The market was under pressure for a second day as it digests the ramifications of the FTX rescue plan.
A new bear market low of $17,019.14 has been reached by the digital currency. One year ago, it hit its all-time high. The price of ether dropped to $1,152.34.
The token continued to fall. On Tuesday, it plunged 26.4%. Sam Bankman- Fried, who runs FTX and is also the owner of Alameda Research, was a big supporter of the Solana project.
Providing SOL token liquidity as well as support for Solana projects on FTX exchange has been an important driver for the company. In the short run, this is a bad thing. FTX/Alameda may face near term pressure on its holdings as the situation resolves.
After Bankman-Fried, also known as SPF, announced that it will acquire its non-U.S. operations, the market spiked, but then plummeted.
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Line chart with 2086 data points.The chart has 1 X axis displaying Time. Range: 2022-11-08 00:00:00 to 2022-11-09 10:45:00.The chart has 1 Y axis displaying values. Range: 15 to 35.End of interactive chart.
A report last week showed that a large part of Alameda's balance sheet was in FTX token, the native token of the FTX trading platform. A run on the FTX exchange and a liquidity crisis were caused by the announcement of the offloading of the FTT on the books by Changpeng Zhao.
The day before, FTT was down 75%.
The bombshell is likely to have a negative effect on the industry. More regulatory scrutiny of offshore exchanges is expected. It is not clear how much of the market will be affected.
Bankman-Fried was recently praised as a "white knight" in the industry as he came to the rescue of firms that almost didn't survive thecryptocurrencies.
Tom Brady and Giselle Bndchen became ambassadors of the company and became megadonors after FTX secured the naming rights to the Miami Heat basketball team's stadium.
Given the public nature of FTX CEO Sam Bankman-Fried and the size of FTX, we believe that the week's events could cause some loss of consumer confidence. It might take time for customers to regain trust in the industry.
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