screenshot from Twitter
It's always a roller coaster of emotions for crypto traders/ investors. The prices of cryptocurrencies continue to drop after the short pump.
I was just having a chat with a good friend and he simply said it's because of FTX saga and that it's a long story!
Most times 'it's a long story' slang means that the gist is not worth bothering oneself about. Yeah, that moment you say, ' don't try to analyse it, your head will hurt'
What happened though? The state of things with this crypto exchange platform FTX is not going so well and I'm sure crypto investors are having the cause for worry even though Binance is 'planning' on a rescue deal.
Crypto giant Binance, signed a one nonbinding agreement on Tuesday to buy FTX international unit. This include the U.S. unit - to help cover "shortage of money" being experienced right now.
This proposed deal between FTC and Binance came after a week of speculation about the financial condition of FTX leading to the withdrawal of $6 billion within 72 hours. It was not certain that Binance will eventually come to the aide of it's rival- FTC.
Sadly, Binance pulled out of the deal. They don't want to have anything to do with exchanges that misuse investors' money. According to them, they will not think twice in joining force with the free market to weed out what looks or smells like funds misappropriation.
As expected, this caused complications. People begin to doubt FTX exchanges. Lots of people tried to withdraw but only few were successful.
Naturally, investors began withdrawing their money on Sunday morning after several tweets from Binance CEO Changpeng Zhao, saying that they will sell their shares of FTX native token, FTT due to some concern about the company.
The reply from FTX founder, Sam Bankman-Fried was that everything was fine and that Binance was only dishing fake rumors.
All of these have something to do with Alameda Research- Sam Bankman-Fried's other business. Though FTX and Alameda were supposed to be two separate companies, people have managed to link them together with the rumor that Alameda media is heavily funded by FTX token hence both multi million dollar companies are in deep money problems.