FTX, a major cryptocurrency exchange, is on the brink of collapse this week amid liquidity concerns and allegations of misused funds, followed by a large volume of withdrawals from rattled investors. The value of FTX’s native token, FTT, plummeted, taking other coins with it, including Ethereum and Bitcoin, which reached a two-year low as of Wednesday afternoon.
The impact of FTX’s crash could have wide-reaching implications throughout the crypto market because cryptocurrencies and exchanges with exposure to FTT or FTX could face sinking prices and financial troubles.
Here’s what this week’s events mean for major exchanges, U.S. investors and future crypto regulations.
These are the key points:
FTX is a cryptocurrency exchange founded by CEO Sam Bankman-Fried in 2019. The exchange issues its own token, FTT, and was the fourth-largest crypto exchange by volume as of Tuesday.
Bankman-Fried also founded a crypto trading firm called Alameda Research; CoinDesk reported on Alameda’s…
This article was written by Dalia Ramirez and originally published on www.nerdwallet.com