Shocking event
FTX exchange event FTT platform currency how many people screaming ghosts and wolves
FTX robbery: shocking event that caused panic and credit collapse
On June 2, The Block said that FTX finally came to bankruptcy costs of more than 700 million, selling 15 million shares of stock for more than 450 million, and the largest buyer was G Squared.
Back to 2019, in the field of cryptocurrency, the rise of FTX exchange is undoubtedly one of the most eye-catching phenomena in recent years. Founded by Sam Bankman-Fried (SF for short), he regards himself as an altruist and promises to donate all the profits of the exchange back to society. FTX has not only achieved great success in business, but also played an influential role in political campaigns across the United States through political donations, and it seems that it always gets the green light in regulation.
However, on November 2, 2022, a report by the crypto media CoinDesk revealed problems with the balance sheet of Alameda Research, an investment company associated with FTX. The report pointed out that a large part of Alameda Research's assets were FTX's platform currency FTT, and the price of FTT was artificially raised by FTX and Alameda Research, and it was not actually worth that much.
This news caused an uproar in the cryptocurrency circle, especially after the collapse of LUNA/Terra, the market was extremely sensitive to such news. Market panic spread rapidly, and investors sought to exit.
Against this background, Binance's founder Changpeng Zhao (CZ) posted a tweet on Twitter, saying that Binance was willing to acquire FTX to stabilize the market. However, after evaluation, CZ found that FTX's funding gap was too large to be saved. On November 10, CZ tweeted again, announcing that Binance gave up the acquisition of FTX, a decision that directly sentenced FTX to death.
Binance's abandonment exacerbated the market's panic about FTX, and the price of FTX's token FTT plummeted. In just one week, the value of FTT evaporated by 95%, and many investors suffered huge losses.
FTX's crisis not only exposed the fragility of the cryptocurrency market, but also triggered widespread discussion on the transparency and regulation of exchanges.
