This Tuesday, November 8, Binance announced its intention to acquire FTX, a famous cryptocurrency management platform. While the latter was worth 32 billion dollars at the start of the year, it was weakened by a series of accusations against it. As usual, the crypto market panicked and caused the price of Bitcoin and Ether to plummet.
2022 will undeniably have been the dark year for cryptocurrencies. Rarely has the sector been so shaken, after its rise in 2021. After the fall of stablecoins in May 2021, the market struggled to recover from the extreme panic that affected all investors. If things seem to have calmed down somewhat, without being resolved, the IMF still considers that the situation is dramatic.
And it’s not about to get better. On Twitter, the hashtag #cryptocrash is currently trending. In question, the surprise announcement of the takeover of FTX by its lifelong rival, Binance. In recent years, the two platforms have established themselves as the essential players in the sector, with their ultra popular asset management solution. But everything changed in a few days for FTX.
FTX sinks and drags Bitcoin and Ether down
Recently, accusations about the management of FTX accounts have surfaced, following an incriminating article by the specialized media CoinDesk. The controversy swells and the firm quickly loses its value. Changpeng Zhao, CEO of Binance, takes advantage of the situation to rub salt in the wound, saying in particular that his competitor is going through a “significant liquidity crisis”. The coup de grace was given on Tuesday, November 8, with a letter of intent to buyout by Binance.
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In the aftermath, FTX accuses of a new fall in the stock market of 30%. Enough to encourage investors to do what they do best: panic. In just a few hours, Bitcoin in turn fell, falling back below $18,000, its lowest level in two years. Ether, on the other hand, was also down 13% this morning. A new earthquake for the two cryptocurrencies already well shaken lately.
