Crypto

Major Crypto Coins Slide As Jitters Across FTX Exchange Markets

LONDON/SINGAPORE, Nov 8 (Reuters) – Cryptocurrencies fell sharply on Tuesday and major crypto exchange FTX’s in-house token fell nearly a quarter as investors appeared spooked by pressures on FTX’s finances .

Bitcoin, the biggest digital token, fell 6% to $19,351, its lowest level in two weeks, and was on track for its worst day since mid-September. Ether, the second largest, fell more than 6%.

FTX came under pressure after Changpeng Zhao, head of rival exchange Binance – the world’s largest – said on Sunday that his company would liquidate its holdings of FTX tokens due to unspecified “recent revelations”.

FTX founder Sam Bankman-Fried said the exchange was “good” and the concerns were “false rumours”. FTX had no immediate comment when contacted by Reuters on Tuesday.

The FTX token – which offers holders discounts on FTX trading fees – last fell almost 23% to $17.11, its lowest since the start of 2021. The token, known as from FTT, is the 29th largest digital coin with a value of $2.3 billion, according to CoinMarketCap.

Figures from analytics firm Nansen showed a one-day net outflow from FTX of around $630 million, suggesting that account holders were also getting their money’s worth.

“On-chain analytics show that hundreds of millions of dollars have been withdrawn from FTX in the past day,” said Matthew Dibb, COO of Singapore-based crypto investment manager Stack Funds.

“The issue of FTX’s solvency has been raised given recent events this year…but we don’t yet see hard data that would confirm this kind of view.”

Crypto users asked questions on Twitter last week about the FTX token following a report by news site CoinDesk on a leaked balance sheet from Alameda Research, a trading company founded by Bankman-Fried that maintains close ties with FTX.

Alameda CEO Caroline Ellison said in a tweet Sunday that the “balance sheet information” showed only a subset of Alameda’s corporate entities. Alameda has more than $10 billion in assets not reflected in the CoinDesk report, she said.

Reuters was unable to independently verify the accuracy of the report or the origin of the disclosed balance sheet.

Reporting by Tom Westbrook and Tom Wilson in London; Editing by Louise Heavens and Ed Osmond

Our standards: The Thomson Reuters Trust Principles.

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