Competitor to Owner – FTX Has Fallen 📉

Competitor to Owner – FTX Has Fallen

FTX was hailed as one of the best cryptocurrency companies due to their upstart success and their CEO, a young man named Sam Bankman-Fried who has become a people’s favorite. Athletes like Tom Brady and Steph Curry were endorsed by FTX, with Brady having a personal stake in the company, and their strength was believed to be true after they stayed mostly unaffected by the crypto scare a few months back.

Fast forward to today, and FTX has fallen from its heights into a place no one expected. The company suffered from a sudden liquidity crisis as users pulled out their money, and as a result, they had to be bought out by rival business Binance in what was a move that shocked everyone. You could say they started it as Binance CEO CZ (Changpeng Zhao) sold more than $500 million worth of FTT tokens over the weekend, removing Binance’s investment into FTX and making others follow suit. FTX witnessed $1.4 billion in withdrawals of Ethereum in a 24-hour period, and by then things were done. For those who had their money in FTX, the situation becomes messy now, and it displays the risks of the crypto market. All these firms are susceptible to random crashes like this that could cripple the company, and FTX was the victim here. Binance emerges as one of the only surviving players in the industry, making them a leading force for whatever they seek to do.

As for SBF, he witnessed the greatest one-day drop in wealth in what could be human history. The 2 things keeping his net worth at $14.6 billion were the valuation of FTX and the crypto firm he runs with them, and both were deemed worthless after the sale to Binance. This caused his net worth to decrease by 99.99 percent, losing his billionaire status and what could be his influence too.

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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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