The FTX crisis has affected the entire cryptocurrency (virtual asset) market. The collapse of FTX, the world’s third-largest cryptocurrency exchange, is raising anxiety about the Centralized Exchange (CEX). Many exchanges are taking measures, such as proving reserves. However, they do not seem to calm down easily. As a result, interest in the Decentralized Exchange (DEX) and cryptocurrency wallets has also escalated. The effect has taken entire amount of cryptocurrency from CEX.
As FTX filed for bankruptcy, the situation became increasingly serious. Customers and institutions were prevented from withdrawing funds. In the aftermath, cryptocurrency lender BlockFi has stopped withdrawing customers and is considering filing for bankruptcy. Lender of cryptocurrency, Genesis Global Capital suspended repayment as well as new loan services. So FTX programs: the cryptocurrency exchange Gemini’s “Unprogram” and Gopax’s “Go-Fi Free Trade Product” have been suspended.
Concerns are also rising over Genesis Global Capital and its sister company Grayscale. The parent company of Genesis Global Capital and Grayscale is the same as the Digital Current Group (DCG). Blockchain networks and token prices associated with FTX also plummeted. The Solana Foundation also said it has 134.54 million SRM (serum) tokens and 3.43 million FTT (FTX tokens) in FTX. On the 14th, it announced that it has 3.24 million shares of FTX common stock. As a result, SOL prices have fallen by more than 50% over the past 30 days. The price of tokens invested by FTX Ventures, such as NEAR (Near Protocol), has also fallen significantly.
The stability of the cryptocurrency market has been challenging in recent months. This is due to the bank run of FTX, one of the world’s largest cryptocurrency exchanges. Binance, the world’s No. 1 cryptocurrency exchange, said it plans to sell about 23 million FTTs ($529 million at the time), FTX’s own token.