Several major digital assets have seen a 20 percent decline in value over the past 10 days, due to the collapse of the Bahamas-based FTX exchange. FTX is the third-largest cryptocurrency exchange in the world, and it started the year with a $400 million Series C funding round.
The exchange’s value plummeted, leading to a run on deposits, leaving it with an $8 billion shortfall. Voyager, which had planned to acquire FTX, called off the transaction, and FTX filed for bankruptcy protection in the United States.
FTX is in touch with financial regulators, and has appointed five independent directors to each of its main companies. It also has a recovery fund in place to reduce the cascading effects of its collapse.
The FTX downfall is expected to accelerate downward moves in the commodity and stock markets. FTX’s CEO resigned, and Bankman-Fried was replaced as the head of the company.
FTX said that it had detected unauthorized access to its platform. Binance stopped accepting the FTX token on its platform, and FTX has been in touch with financial regulators.
The Bank of International Settlements (BIS) recently released a new survey on the value of cryptocurrencies. The study found that total market capitalization for cryptocurrencies had fallen by 24% between Nov. 8 and Nov. 10.
The collapse of FTX has led to a downfall in several major digital assets, including bitcoin. The exchange’s collapse has pushed the price of the digital currency to two-year lows.
