After a little relief rally Most cryptocurrencies have resumed their decline. Low prices are in principle not a problem, because then you can buy back cheaper. But then you should be able to buy at all. According to FTX’s CEO, that could become more difficult, according to him some trading platforms are secretly bankrupt.
Exchanges are now vulnerable, says FTX CEO
In an interview with Forbes FTX chief executive Sam Bankman Fried, aka “SBF,” stated that there are many more crypto exchanges than you might think. At the time of writing, the counter stands at over 400, according to data from CoinGecko†
You may have heard of FTX, Coinbase or Bitvavo, but have you ever heard of Powertrade, Bitfex or Clipper? There are so many that it is difficult to know most of them. Many of these parties are decentralized and have a very low trading volume.
Exchanges depend on their traders. They charge limited trading costs, which form the turnover. As soon as prices fall too much, that turnover decreases. Falling prices are also less attractive for investors to continue investing after a bull market, and that puts less pressure on turnover.
The declining markets do not make trading platforms any easier. Forbes emphasizes that hacks make the situation even more difficult. Investors with tokens on the exchange then lose their money and exchanges lose merchandise.
Some Bitcoin Companies Not Worth Saving
Sam Bankman-Fried is basically emphasizing what Binance CEO CZ also said earlier this month: some companies are not worth saving. These companies already have so many problems with the balance sheet or with regulations that there is very little left of them.
THowever, the CEO has already indicated that he is willing to help companies financially to prevent ‘contamination’ of other companies. He has already done that for BlockFi. But now Morgan Creek, just like FTX, is already very interested in the well-known crypto lending platform.
