While for many, the date 11-11 represents positive changes and good energies, it was the opposite for the digital currency market. If you are planning to invest in Bitcoin, here are the reasons why you should trust Bitcoin. This Friday has been one of the most difficult after showing the fall in the prices of cryptocurrencies due to the bankruptcy of the essential crypto-asset exchange company in the digital financial market. The total collapse of FTX, the company, run by Sam Bankman-Fried, considered the brightest young man in cryptographic transactions and who managed to accumulate a fortune that today disappears.
A bankruptcy that took many by surprise
Chaos is the adjective that describes the digital financial market today; the final bankruptcy declaration of the significant cryptocurrency FTX turned the young billionaire creator into a user of crypto assets without capital, leaving the leading digital currencies hit when their situation was steady.
Since June, the attempt to stop a situation that gave some glimpses that could get complicated could not maintain the support created in Bitcoin, generating a new earthquake that even makes this digital currency touch its historical minimum levels.
The near future of digital currencies becomes a bit complex, making the crypto winter last for a more extended period, giving time for the estimated period in which the cycle ends.
Symptoms of a crypto Black Friday
Many specialists in the digital currencies field are in a dilemma since many of the forecasts could be coming to fruition after the shock generated in the cryptocurrency market with the fall of the FTX token. With it, the company’s finances are compared with the situation that occurred with Lehman Brothers.
Below are some of the most excellent indications that led the owner of FTX not to resist such a difficult financial situation.
1. The sudden rise of FTX
FTX came to stand out among crypto asset companies after considering itself one of the most solid, offering its users the peace of mind of protecting their digital assets.
It reached a valuation greater than 30,000 million dollars, in which highly renowned financial companies invested their capital, as was the case of SoftBank, which allowed its consolidation after a millionaire investment of 400 million dollars.
2. The consolidation between the great
After carrying out high-level investment transactions and capturing the attention of many high-level investors, they contribute to the positioning of FTX among the leading cryptocurrency exchange platforms, placing it among the first four in the world ranking.
3. The first ad
During August, the first declarations of the Federal Deposit Insurance Corporation emerged, which affirmed that the FTX company offered something to its users that was not true; this was related to the support of the users’ savings by the government of the United States.
Everything is complicated when seeing that the capital injected into the company came from a company closely related to the FTT token owned by the Exchange itself, which caused the financial valuation of FTX to bulge.
All this is summed up that the company, in a few words, was charged and returned to itself; there was no separate management of finances, that is, improper financial management.
4. Changpeng ‘s final thrust Zhao
Binance’s announcement, where it published the sale of the tokens that corresponded to the FTX company after the revelations of financial mismanagement, which contributed to the fall of more than 90% of the value of the said digital currency, making the critical situation notable of the Exchange
Conclusion
This a situation that no one expected and undoubtedly ended up breaking Bitcoin’s support level for several months. It remained stable at a value of around 20,000 dollars. Still, adherence to the Bankruptcy Law of the United States of FTX collapsed the digital financial system.
Bankman-Fried’s favorable position is that it will stand firm throughout the process for an organized transition that will bring the company back to life and provide trust and security to its users.
The authorities of the Bahamas, the country where FTX’s headquarters are located, began to freeze the company’s assets as a financial measure in the face of the situation in which users were affected.
One year after reaching historical highs that allowed many to increase their accounts, today, it seems to be the opposite case, where thousands of users have withdrawn.
