(Amid the Binance news and FTX battle crypto market is falling)
Recently, crypto exchange platforms are seeing significant losses after Binance detaches its deal with rival FTX cryptocurrency exchanges.
If this situation continues, it can be a significant loss for crypto traders. According to industry experts, some exchange platforms may also cease their operations.
One the most significant coins by market capitalization, Bitcoin fell approximately 25 percent on Wednesday after the popular crypto exchange platform backed out from the deal. This week bitcoin is trading below the 18,000 mark. Following this, Bitcoin, Solana, ripple, and other cryptocurrencies are also seeing significant losses for the first time since 2020. As a result, Bitcoin has fallen to its lowest after two years.
Cryptocurrencies exchange platform Binance announced to buy off its rival to FTX trading on Wednesday. However, later it backed out from the deal.
Users rushed to withdraw their funds from the platform due to liquidity concerns at the beginning of this week. As a result, more Than 1.2 billion funds have been removed from the FTX platform.
After an initial review of Binance news, it released a statement saying that it had some concerns that concerned it to back out from the deal.
Market Move such action
In the beginning, we had the full support of FTX consumers to help n liquidity, but the issue was beyond our control, Binance said in a statement.
Due to some corporate diligence and reports regarding mishandling the funds and alleged US agency investigations, we have decided to pull out of the deal. Binance said in a statement on Wednesday.
Every time in the industry any plan fails, consumers face significant losses said to Binance officials. Binance native token BNB is currently trading at nearly $300.
Meanwhile, the FTX still faces issues with its client handling funds and lending practices.
Solana plunged approximately 38 percent with a market capitalization of roughly $ 5 billion. The trade volume of Solana was approx $4.7 billion. Seeing the investors and may trading about the future for cryptocurrencies.
FTX has agreed to sell the platform after experiencing the bank run. Customers withdraw their funds after becoming concerned about whether the venue has sufficient capital. The sudden sale was shocking for the platform SEO and founder Sam Bankman-Fried.
As per the report, FTX’s crypto token FTT plunged more than 45 % after the move. The token is now trading approx USD 2.08 with a 24-hour trading volume of USD 577,519,883.
FTX is the first crypto exchange platform that faced a huge loss this year under financial pressure as the crypto assets have collapsed.
FTX is currently being investigated by the US authorities for its fund handling, according to coincides, Bloomberg news, and other media sources.
