Crypto

Binance Lets FTX Drown and Plunges Cryptocurrencies into a New Crisis

FTX, the second largest cryptocurrency exchange, just went down. Binance, which wanted to pursue the merger, eventually gave up.

The “winter” of cryptocurrencies has already been very cold, but now the world of virtual currencies has been hit by another bad news. While the FTX exchange platform is experiencing great difficulties, Binance, another giant in this sector, on Tuesday, November 8, proposed to arrange a merger of the two companies.

But after analyzing FTX financial data, Binance decided to back off. A solution that plunges the crypto world into crisis even more. The brand justifies itself by explaining in a press release that they wanted to help FTX customers by providing new liquidity, but “the problems are out of control and beyond our power to help.”

Thus, the rescue mission failed, and Binance is the first to regret it. “Whenever a major player in this sector fails, it is the small consumers who suffer.” As the regulation and decentralization of cryptocurrencies continues, FTX has just lost its status as an exchange platform.

FTX: Fall of a Giant

It’s the end of the week in hell for the company. It all started with CoinDesk revelations claiming that the company was in dire need of money. Since then, the problems have been piling up. Changpeng Zhao, big boss of Binance, then comes in as a savior, proposing a merger plan (after he weakened FTX again by selling millions of cryptocurrencies, destabilizing the market).

Therefore, many analysts assure that the deal will not take place. The information was confirmed by Binance in the middle of the week. For its part, FTX tries to keep up appearances. The company posts a notice on its website that all withdrawals are on hold. This fall of the industry giant had repercussions for the entire market.

Today, all cryptocurrencies, even the most popular ones like Bitcoin or Ethereum, cannot recover from this news. Bitcoin, valued at more than €20,000 on November 6, was sold on November 10 for just €16,000. This drop is explained by the disappearance of FTX.

Physical wallet: the solution to all problems?

The abandoned cryptocurrency exchange company saw its main investor, Sequoia Capital, leave the ship before it finally sank. Today, FTX is misleading thousands of people, and many of them will lose large sums of money.

In order not to be at the mercy of such a twist, it is best to choose a physical crypto wallet that Ledger offers. A solution that allows you to keep your cryptocurrencies warm and not depend on anyone to access them. However, this solution does not allow you to recover your original stake if the cryptocurrencies collapse.

It is best, as with any investment, to play with amounts of money that can be lost at any time. Even though the cryptocurrency market is strengthening, cracks like TerraUSD cannot be ruled out.

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