
Raz Miah, Head of G + Co 3.0 shares his thoughts on this momentous event:
Crypto markets are haemorrhaging at the moment in one of the largest daily slumps this year. The move has been ignited by FTX and Binance battle.
In one of the largest and fastest market crashes of the year, $132 billion has been wiped out of crypto assets. What is more remarkable is that this has happened over the past 12 hours.
According to CoinGecko, the total market cap has slumped from $1.07 trillion 24 hours ago to $938 billion.
Most of the major crypto assets are suffering double-digit losses with the native FTX token leading the pack. FTT has dumped a whopping 75% over the past few days as liquidity and insolvency concerns grow.
The move was accelerated by the announcement that the exchange will be taken over by rival Binance.
Changpeng Zhao’s decision to liquidate Binance’s entire stash of FTT tokens, as the executive had some issues with some recent information regarding the SBF-led exchange. This resulted in immediate price volatility for FTX’s native cryptocurrency.
It dropped to $22 on Monday, despite SBF’s response and assurance that FTX is doing just fine. However, the situation worsened yesterday when the asset was down by roughly 20per cent more to way below $20.
It seems as if this has impacted the entire market as red dominates the scene. Ethereum was down by 5 per cent in a day and trades under $1,500. Cardano, MATIC, Polkadot, Tron, and OKB have declined by up to 5 per cent.
More losses are evident from the likes of Ripple, Dogecoin, Solana, Shiba Inu, Avalanche, and others.
As such, it’s no wonder that the cumulative market cap of all crypto assets has shed $70 billion in a day and is down below $1 trillion.
Those invested in the market will see a considerable impact on their own cryptoassets and some may have already started to withdraw and sell off digital currencies in fear of diminishing returns on their initial investments.
A lot has happened in the last week in the crypto space. If you have ever interacted with FTX or FTX US, we strongly recommend for you err on the side of caution, download your trading history, and deposit and withdrawal CSVs.
Whilst it may be possible that those documents will still be accessible for the coming months (as is the case for Celsius), we suggest downloading them in case the FTX or FTX US websites or their APIs become unavailable.
CSVs may help in future if you require proof that your funds are stuck in FTX. The tax implications of the current situation remain unclear. We recommend that you get in touch with a tax professional if you still have funds in FTX.
If investors are in this position, they can contact our team at G + Co 3.0 for guidance.