coinedition.com
The crypto market is currently in a bleeding trend, with Bitcoin falling below $17,500 for the first time in many months. The global crypto market value also lost the $1 trillion cap, with significant coins plummeting by over 20% within 24 hours.
These crashes come immediately after Changpeng Zhao (CZ), the CEO of Binance, posted on Twitter that his team has signed a non-binding letter of intent to acquire FTX to protect users from significant financial losses.
FTX’s native token, FTT, consequently took a heavy blow. Available data shows that FTT went from $21.20 to $2.51 in the last 24 hours, representing over 88% loss. Also, the CEO of FTX, Sam Bankman-Fried, lost his billionaire status with the price of FTT. His name vanished from the Bloomberg Billionaires Index after his estimated personal wealth plummeted nearly 94% to $991.5 million in a single day from $14 billion.
The FTX story affected the entire digital asset landscape, including the traditional financial market. ARK Investment Management on Tuesday sold over a million shares of Robinhood Markets at an estimated valuation of over $9 million. The brokerage platform had previously lost 19% of its value early Tuesday.
In 2021, the Ontario Teachers Pension Plan invested significantly in the embattled FTX crypto exchange. The organization participated in each of FTX’s $400 million Series C funding rounds from last year. Currently, FTX is suffering a liquidity crisis.
The newly signed agreement with Binance will help the exchange stand firm against its current liquidity crunch and be able to honor users’ withdrawal requests.