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FTX, once the third largest crypto exchange by trading volume, collapsed over the past week as its native token, FTT, lost over 80 percent of its value. The firm has now filed for Chapter 11 bankruptcy protection, and its collapse could impact the entire crypto sector, said Ran Neuner, Host and Founder of Crypto Banter.
“How long will it take to bring money [back] into this industry, so people can trust it again?” Neuner said. “It’s a huge catastrophe… I expect the cleanup operation from this to last a long time.”
He suggested that this could lead other firms, like crypto lender BlockFi, to also fold. On Thursday, BlockFi announced it would be freezing withdrawals from its accounts.
“There is a rumour in the industry, and I can’t confirm it because I haven’t seen the papers but it comes from a reliable source, that BlockFi… had a loan to FTX collateralized by FTT,” said Neuner. “FTT is now worth zero and FTX can’t repay the loan.”
“We’ve had a cascade of failures [in the crypto industry],” he continued. “The centralized players seem to have systematic failure because of greed, because of over-leverage, and stuff like that.”
Neuner spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News.
“How long will it take to bring money [back] into this industry, so people can trust it again?” Neuner said. “It’s a huge catastrophe… I expect the cleanup operation from this to last a long time.”
He suggested that this could lead other firms, like crypto lender BlockFi, to also fold. On Thursday, BlockFi announced it would be freezing withdrawals from its accounts.
“There is a rumour in the industry, and I can’t confirm it because I haven’t seen the papers but it comes from a reliable source, that BlockFi… had a loan to FTX collateralized by FTT,” said Neuner. “FTT is now worth zero and FTX can’t repay the loan.”
“We’ve had a cascade of failures [in the crypto industry],” he continued. “The centralized players seem to have systematic failure because of greed, because of over-leverage, and stuff like that.”
Neuner spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News.
FTX collapse could mean ‘cascade' of failures in crypto sector - Ran Neuner
FTX collapse could mean ‘cascade’ of failures in crypto sector – Ran Neuner
www.kitco.com
