At the moment, the cryptocurrency market is in a bear market, with Bitcoin dropping below $17,500 for the first time in many months.
The value of the global cryptocurrency market fell below the $1 trillion mark as well, with some valuable coins falling more than 20% in just one day.
These crashes occur right after Binance CEO Changpeng Zhao (CZ) tweeted that his team had signed a non-binding letter of intent to purchase FTX in order to shield users from sizable financial losses.
FTT, the native token of FTX, suffered greatly as a result. Data available indicates that FTT lost over 88% of its value in the last day, falling from $21.20 to $2.51.
Sam Bankman-Fried, the CEO of FTX, also lost his billionaire status when the price of FTT increased.
His estimated personal wealth fell by nearly 94% in a single day, from $14 billion to $991.5 million, and his name was removed from the Bloomberg Billionaires Index.
The FTX story had an impact on the traditional financial market as well as the entire landscape of digital assets.
At an estimated valuation of over $9 million, ARK Investment Management sold over a million shares of Robinhood (NASDAQ:HOOD) Markets on Tuesday.
Early on Tuesday, the brokerage platform had previously lost 19% of its value.
The troubled FTX cryptocurrency exchange received a significant investment in 2021 from the Ontario Teachers Pension Plan.