FTX: From Promising Start-Up to Problematic Exchange

in ftx •  2 years ago 

ftx.jpg
Image from Capital.com

In the heat of the debates regarding the disintegration of the Binance-FTX deal, I don't think that the controversy will die anytime soon. In fact, this might be the start of an endless stream of tweets, Telegram posts, and Reddit discussions on FTX's demise or whether it will be able to weather the storm.

On November 9th, we were all taken aback when Binance CEO Changpeng Zhao, often known as CZ, stated that the largest cryptocurrency firm in the world had reached a non-binding agreement to acquire FTX's non-U.S. operations. enterprises for an undisclosed fee, sparing the business from filing for bankruptcy. If you've only just learned about FTX's current troubles through this post, then allow me to confirm that Binance has opted not to proceed with the agreement and will stop purchasing FTX. This decision was made after conducting due diligence.

Sequoia Capital Writes Off $210 Million FTX Investment Amid Bankruptcy Fears

In addition to the many difficult situations it is already dealing with, FTX finds itself in a hot water as Sequoia Capital pulls the plug.

The most prominent venture capital firm, Sequoia Capital, announced in the early morning of November 10 that it will write down to $0 its approximately $210 million investment in FTX due to the company's potential for bankruptcy.

As the FTX exchange headed for bankruptcy, its native token value dropped 30%, now trading at $2.21.

Closing Thoughts

Despite recent reports of FTX's insolvency, it's comforting to know that other cryptocurrency exchanges' futures remain promising. In recent months, platforms like CoinDCX, KuCoin, Coinbase, and Gate.io have expanded quickly, offering new features and assets at an impressive rate.

We may not know what the future holds for FTX, but let's hope for the best for the other cryptocurrency exchanges that are working hard to constantly develop new features, improve user experience, and support possible blockchain projects for its users.

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