The FTX hacker dumping ETH and hawkish Fed comments frightened the cryptocurrency markets, which remained weak on Monday.
An anonymous cryptocurrency analyst/Twitter user @frxresearch has revealed the full list of companies that invested in FTX in the seed fundraising round, as well as in the A, B, and C funding rounds. The tweet claiming that Binance Labs, a VC branch of Binance that invested in FTX in the Series A round, still owns its holding in the FTX Token was addressed by Changpeng Zhao, CEO of Binance.
What does CZ say about FTX hacker dumping ETH?
The company’s CEO dispelled rumors that Binance intended to liquidate its FTT assets in order to defend itself against FTX by pointing out that FTX has never been a rival. “CZ” refutes the myth that Binance’s decision to sell its FTT holdings was an intentional retaliation against FTX. He claims that his exchange has never viewed FTX as a competitor in the cryptocurrency market.
CZ made these remarks in an attempt to express his viewpoint on the recent FTX drop, its connection to Binance, and the fall’s possible long-term effects on the greater crypto market during a CNBC Squawk Box interview:
“We were never against them. We don’t focus on other smaller exchanges; focusing our energy there doesn’t give us the best return,” CZ said. He added that helping to grow the industry would bring in more clients than taking customers from other exchanges. Hence, Binance wishes to grow the industry “together with other exchanges.”
When asked about the considerations that led Binance to decide to save the FTX deal, CZ listed a few.
He revealed that the Binance team had identified a substantial financial theft from FTX users and underlined that they could no longer trust any additional data after understanding that SBF had mislead everyone, including his clients and investors.
Why is crypto crashing today?
In contrast to Ethereum, which fell 8% to just $1,100 levels, Bitcoin continued to fall and broke through the $16,000 threshold. As investor confidence begins to fade, market volatility is likely to persist.
The major cryptocurrency tokens had significant cuts. XRP dropped 11% while Dogecoin fell 12%. Solana and Polygon both lost 10% of their value, falling from eighth to fifteenth. The market capitalization of all cryptocurrencies was falling precipitously, falling by around 5% in the previous day, trading at around $795 billion. Nevertheless, the overall trade volume increased by over 68% to $55.80 billion.
Unchained Capital downsized its employees by around 15% and promoted Chief Product Officer Will Cole to a senior advisory position from Chief Business Development Officer Parker Lewis to the board of directors. Crypto trading platforms are scrambling to demonstrate that customer assets are secure and not being used for speculation in the wake of the failure of FTX and Alameda Research.
Bank of America (BAC) stated in a research paper on Thursday that:
“Proof of reserves, at least in the form they’ve been presented, have too many faults to inspire confidence.”
According to Reuters, Hong Kong-based cryptocurrency services company, Genesis Block announced that it would stop providing over-the-counter trading services due to the potential for contagion from the now-defunct FTX platform.
According to CNBC, the US-based cryptocurrency payments network Ripple is seeking regulatory authorization in the Republic of Ireland to enter the European market.
We’ll keep bringing it to you as the FTX scandal continues to shake up the cryptocurrency industry. If you want to know the latest updates on the FTX case, you can read our article called FTX class action lawsuit explained.