The liquidity crisis is turning into a confidence crisis. Major cryptocurrencies accelerated their decline on Friday, after exchange platform Binance announced it was abandoning its acquisition of struggling rival FTX.
Bitcoin fell below $16,000, its lowest since 2020, after losing more than 20% since Sunday. The decline is more severe for Ethereum or Solana. In total, more than 200 billion dollars evaporated from the market in less than seven days. After gaining access to FTX’s accounts and certain internal documents, “we have decided not to proceed with the transaction to acquire FTX.comBinance CEO Changpeng “CZ” Zhao said Thursday evening.
“Not too big to fail”
Gold Binance appeared to be the last hope for FTX to acquire the necessary cash to meet its $7 or $8 billion in liabilities and avoid bankruptcy. As of Tuesday, his customers no longer have access to their funds. The house is burning…
Source: Le Figaro
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