The crypto market has seen a drastic change as prices dropped this week following the news that the FTX (Fintech Token Exchange) crypto FTT has crashed. This has caused other popular cryptocurrencies and stocks to follow suit, including Coinbase, Bitcoin and Ethereum, seeing investments and savings plummet within hours.
Cryptocurrencies are highly volatile, be aware of the risks when trading them.
The FTT token has lost around 30% of its value these past few days after approximately 1.9 million FTT tokens were moved from the Genesis OTC Desk to FTX. The value of these tokens was around $44 million on November 8th, when this occurred.
There have been speculations that this move is due to Binance selling these tokens as the crypto is not performing as it should. But Changpeng Zhao (CZ), Binance CEO, has denied these claims.
Binance’s involvement with FTX
On Tuesday, Binance put together a deal to help FTX after exchanges like Coinbase and OKX declined to help. This all progressed from the drama a week before that questioned FTX’s CEO Sam Bankman-Fried and the stability of FTX and his sibling trading firm Alameda Research and how close the two organizations are.
Despite this, however, the proposed acquisition from Binance ultimately very quickly fell through as the the crypto giant withdrew from the proposed package citing due diligence findings as one of their ultimate reasons for withdrawing.
There have now also been reports that over 13 million FTT tokens were removed from FTX to different wallets. One of the standout transfers had a value of around $166.5million to a new address that is currently the fourth largest FTT token holder.
These rumors surrounding the future of FTX have caused many people to question whether or not the crypto token will survive because of the surge in withdrawals of the token.
What does this mean for crypto investors?
The crypto winter is well and truly underway, with popular coins like Bitcoin, Ethereum and Cardano all seeing their prices decline severely within hours of the FTX news.
For cryptocurrency investors, some suggest now is the ideal time to buy the dip and take advantage of these low prices. Additionally, investors are being urged to diversify their portfolios until this crypto price crash starts to see some development in the coming months.
However, there has yet to be confirmation on whether FTX is officially bankrupt. The large amounts of FTT tokens that are being transferred out of FTX could suggest a major change is about to take place. To keep up with the latest crypto market news, we’ll update you here on TradersBest.
So what are the alternatives?
Investors looking for more security in their crypto portfolios should consider using alternative wallets like Binance and Coinbase.
Binance allows customers to trade directly on the platform and has one of the market’s most diverse ranges of cryptocurrencies. It’s also ideal for investors who prefer low trading fees and those who have low budgets.
Additionally, Coinbase is fantastic as a crypto exchange and has recently seen developments in its Coinbase Wallet app, giving investors a secure, decentralized platform for NFTs and cryptocurrencies. It also has a decent range of digital coins to invest in and a secure network to ensure your digital funds and data are safe.