The rate prices of cryptocurrencies continue to drop for the second time on Wednesday, and all the investors continue to get worried about the stability of the sector.
But the financial health of the major crypto exchange FTX was give crypto investor serious worry even though it was bigger rival Binance has plan one rescue deal.
The crypto giant Binance sign one non-binding agreement on Tuesday to purchase FTX international unit – this NP include the U.S. unit – to help cover “shortage of monies” that was rival exchange that they are facing.
But the propose deal between the two major big rivals that will come after one week of speculation about the financial condition of FTX that lead to the withdrawal of $6 billion within 72 hours before the Tuesday deal.
Though the raising questions about how sound one of di world largest crypto exchanges.
FTX and Binance refused to revile the condition of their agreement, and the market hasn’t sure whether the deal will take place.
What cause the down fall of cryptocurrencies price fastly?
Those investors begin to withdraw their money on Sunday morning after several tweets from Binance CEO Changpeng Zhao, has said that his company will sell their share of FTX native token, FTT due to some of them was worried revelation that concerning the company.
The FTX founder, Sam Bankman-Fried, reply Zhao tweets that Binance was“tring to go after us with false rumours,” and is good will insist FTX “assets to be fine.”
But the revelation of Mr Zhao speak about one of the report that researcher talks about Coin-Desk publish in early November about Sam Bankman-Fried other business, trading company Alameda Research.
FTX and Alameda was a separate companies.
So the CoinDesk report has said, that one “private financial document” which that shows that FTX native has token from Alameda balance sheet.
What will happen if this deal don’t work out ?
“What if this deal don’t work out, or (Binance CEO Changpeng Zhao) come back and promise to give 10c of US dollar. It could be blind spot of market that may not be ready for,” Scottie Siu, investment director for Axion Global Asset Management for Hong Kong, Make that speech.
Because the confusion for FTX was the latest sign of trouble for the fast-moving world of cryptocurrencies.
Cryptocurrencies prices have collapse earlier this year for the problems of financial markets that makes investor dump riskier assets.
After the fast rising in 2020 and 2021, bitcoin price has fall around 62% in 2022.
Though Kami Zeng, the head of research of Fore Elite Capital Management, one Hong Kong-based cryptocurrencies fund manager, this is another “alarm warning” for the market and those investors suppose to be patient for some time.
Although “… The whole thing was still look like dark hole. We are not sure how infectious this could be, but I believe institutions need to show their proof of reserves (ASAP). Zeng said that Confidence Will not recover before that”.
If Coin-Desk informant correct, it means that around one-third of Alameda $14.6 billion asset was cryptocurrencies coin that FTX create. It also means the the two companies wasn’t independent of each other as them claim and there two has shaking foundation.
Even this revelation also follow makes FTT plus other cryptocurrencies price to drop.
Because the bitcoin, was the biggest cryptocurrency for the market value, has drop 5.3% in price for one day to $17,559 around 11:07am, but after it drop 10% on Tuesday this makes it to be the worst day since mid-August. But Etherum, was the next biggest, continue loss on Wednesday to hit to the lowest since July.