Sign Up on MEXC
FTX crypto crash to worsen?: Binance CEO Changpeng Zhao ‘CZ’ said the crypto market is yet to see its worst phase after the FTX collapse. Comparing the current crypto crash to the 2008 global financial collapse, he said more companies could crash in near future. CZ was speaking at conference earlier on Friday, when he said there would be cascading effects on the crypto industry. Meanwhile, FTX Token (FTT) recovered slightly after news of Justin Sun rescuing Sam Bankman-Fried appeared.
Read More: FTX Restructuring; New CEO John Ray III Announces Advising Firms
Crypto Crash Similar To 2008 Lehman Brothers Collapse
Considering the events that transpired around FTX this week, CZ said, the global financial crisis is an “accurate analogy” for the FTX collapse. According to a Financial Times report, CZ warned during the conference that more crypto companies, and especially those close to FTX, would suffer more in the coming weeks. On a positive note, however, the Tron founder said the crypto market would ultimately heal itself out of the crisis.
“With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected.”
As of writing, the FTX token price stands at $3.19, up 11.37% in the last 24 hours, according to price tracking platform CoinMarketCap. FTT is currently ranked 76 based on market cap, with its value dropping nearly 90% over the last one week.
More Crypto Companies In For Trouble
Sun said it could take another two weeks for other crypto weeks to announce liquidity issues. In a latest development, the FTX group announced its decision to go for voluntary chapter 11 bankruptcy. Also, Sam Bankman-Fried has resigned from his role as FTX CEO. Earlier, he apologized to crypto community for the chaos that erupted in the crypto market in the form of a price bloodbath. The group said John J. Ray III has been appointed chief executive officer of the FTX Group.
Also Read: FTX Announces Chapter 11 Bankruptcy, Crypto Crash Imminent?
- Solana Treasury Company SOL Strategies Gets Approval To List On Nasdaq
- Fidelity, Grayscale, VanEck Dump Ethereum Amid ETH Price Crash
- Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
- Trump Media Acquires 684M CRO for Cronos Treasury, Strikes Deal with Crypto.com
- SEC and CFTC To Host Roundtable To ‘Harmonize’ Regulatory Frameworks for Crypto
- Chainlink Price Eyes $55 as Reserve Holdings Jump With 43,937 LINK Addition
- Cardano Price Targets 30% Surge as Top Economist Calls for Fed Cut
- ETH Price Forecast as Grayscale’s Covered Call Ethereum ETF Spurs Optimism — Is $8,500 in Sight?
- Bitcoin Price Prediction as SEC Unveils Agenda for Crypto Regulation — Is $200K Next?
- ONDO Price Prediction Amid Bitget Collaboration on Tokenized Stocks and ETFs: Is $2 Next?
