After the FTX crash, the altcoin price continues to fall apart amid the risks of falling to zero. Binance CEO CZ and Ethereum co-founder Vitalik Buterin will collaborate on a new proof-of-reserve system. As the market dances to the tune of FTX’s collapse, CZ is announcing a fund to help distressed crypto projects.
FTX crashed, altcoin price going to zero!
FTT price has been deep in the red for almost a week since its native platform FTX exploded. Koindeks.com As you follow, the crash also destroyed almost the entire cryptocurrency market. In just a few days, the altcoin price has dropped almost 99%. In the middle, at press time, FTT stands at $1.26. Investors and crypto-related businesses are now reeling from the impact of the FTX explosion. Many count the potential losses to millions of dollars due to exposure to FTX, Alameda and affiliates.
Hbit, a Hong Kong-based crypto platform, has reported approximately $18.1 million stuck in currently bankrupt FTX. According to the exchange, $13.20 million of the funds were client deposits, while the remaining $4.90 million was in Hbit assets. Amid other losing exchanges are Crypto.com at $10 million and Genesis at $175 million.
Binance charts the path forward from the FTX crash
Binance CEO Changpeng Zhao (CZ) said on the BUT forum on Monday that his exchange will collaborate with Ethereum co-founder Vitalik Buterin to launch a new proof. He announced that they will develop the proof-of-reserve mechanism for transparency in the episode. Following the development, Binance announced that it has almost $70 billion in reserves.
Meanwhile, CZ has announced a fund for crypto businesses that are badly affected by the liquidity squeeze in FTX. With the effect of this news, the crypto market also saw the green on Monday. At the AMA, the CEO said that four or five funds for recovery funds have already arrived. However, the requests for help from portfolio companies were not that high.
What’s next for the crypto market?
Shockwaves from FTX in the crypto industry will have far-reaching effects. That’s why no one expects it to disappear anytime soon. CZ acknowledges that this could be a long crypto winter with a possible precious recovery. Remember, aside from the crypto market woes, global economies are still grappling with inflation and other uncertainties that could further stifle growth.
The drop in altcoin price seems unstoppable
FTT price was trading around $24.00 at the beginning of November. Later, it seemed to have hit the bottom at $20.00. However, the explosion of FTX turned the altcoin price upside down. Other cryptocurrencies seem to have exhausted their downtrend for now. However, FTT continues to dive deeper into the murky red waters.
The altcoin is hovering at $1.26 at press time. Moreover, it does not offer hope for a recovery. FTT has a pretty high probability of ending its trip at zero unless investors quickly switch sentiment to the positive side.