![]() NBC News has not verified those reports, and Bankman-Fried said in an interview Monday with a Vox journalist over Twitter DM that he needed to raise $8 billion in the next two weeks to make things right with account holders. Media organizations including Bloomberg, the Financial Times, The Wall Street Journal and others cited anonymous sources saying that FTX needed $8 billion to cover the gap between what it owed and what it could pay out. Those connections began to become clearer in the days following FTX’s move to stop withdrawals, as would its financial challenges. What was not yet public was the extent of the connections between Alameda and FTX, or just how bad things had gotten for Bankman-Fried’s companies. 8, FTX stopped allowing customers to take money out of the platform. Billions of dollars poured out of the platform. Those withdrawals would end up resembling a classic bank run, in which people worried about a bank’s solvency rush to get their money out before it runs out of cash. Though the extent of the connections between Alameda and FTX were not yet public, a series of recent crypto platform collapses had already put the crypto community on edge. The price of FTT dropped sharply.Īs the price dropped, many FTX customers moved to withdraw their assets from the platform. 6 that his company would sell off all its FTT tokens. ![]() A virtual bank runĪfter Alameda’s balance sheet was leaked, Changpeng “CZ’’ Zhao, CEO of the crypto platform Binance, a rival of FTX, announced on Nov. People could buy and sell FTT, but trading was relatively limited. FTT was also less transparent than other tokens, making it hard to track just how many tokens had been created. Tokens on a blockchain can be created by a single entity, as was the case with FTT, which was minted by FTX and given out as rewards to users. The first blockchain project, bitcoin, relies on many computers competing against one another to create a distributed system that no one computer can control.īut not all blockchains, cryptocurrencies or tokens work the same way, and many are no longer distributed as bitcoin. Securities and Exchange Commission earlier this month and a continued bear market that started last year.These digital tokens use blockchain technology, in which computers contribute to a shared ledger that can be used to track digital assets. Institutional clients appeared positive in Binance's survey despite the regulatory crackdown against Binance and Coinbase from the U.S. Just 4.3% said they expect to reduce allocation to crypto in the next 12 months. 47% of institutional investors kept their crypto allocations over the past year and more than a third increased their allocation. The survey also found that despite negative market events in the past year, respondents maintained their crypto allocations. More than half the respondents, 52%, had crypto assets under management (AUM) of less than $25 million and 22.6% had AUM larger than $100 million.Ħ3.5% of respondents said they are positive on the outlook of crypto for the next year and 88% said they are optimistic for the next decade, according to the report. The study, conducted by Binance Research and Binance VIP & Institutional team, surveyed 208 of their clients from March 31 to May 15. Binance, the world’s largest cryptocurrency exchange by market value, said its institutional clients are optimistic on the outlook of crypto for the next year and beyond, according to a survey it conducted between March and May 2023.
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