futurewithcrypto.com
Cryptocurrencies were nervous on Wednesday and were scrambling for the floor,
Image credit- google images
After a sharp and broad drawdown when nerves about the stability of exchange FTX turned to a rush of withdrawals and ultimately a bailout deal from bigger rival Binance.
Image credit- google images
Bitcoin, the largest cryptocurrency by market cap, was down 1% at $18,400 on Tuesday after a 10% drop, marking its worst day since mid-August.
Image credit- google images
However, the market's focus was on FTT, the FTX-linked token whose financials have been a source of investor anger over the past week.
Image credit- google images
FTT fell 72% on Tuesday and was down 22% on Wednesday at a two-year low of $4.25
Image credit- google images
The pressure on FTX came in part from Binance CEO Changpeng Zhao, who said on Sunday that Binance would liquidate its holdings of the rival token due to unspecified "recent revelations."
Image credit- google images
Market participants were stunned when Binance on Tuesday listed non-U.S. trading volumes of FTX. signed a non-binding agreement to buy the unit, calling it liquidity crunch.
Image credit- google images
The deal between high-profile rivals Zhao and Sam Bankman-Fried, FTX's CEO
Image credit- google images
followed weeks of speculation about the financial health of FTX, which snowballed into $6 billion in withdrawals in the 72 hours before Tuesday's deal. Gone.
Image credit- google images
Another "alarm alert" for the battered cryptocurrency market, according to Kami Zeng, head of research at Four Elite Capital Management, a crypto fund manager with offices in Hong Kong.
Image credit- google images