Black Friday for the cryptoasset market

While for many the date 11-11 represents positive changes and good energy, it seems that for the digital currency market it was the opposite.

This Friday has perhaps been one of the most difficult after the fall in cryptocurrency prices was evident as a result of the bankruptcy of the most important cryptoasset exchange company in the digital financial market.

The total collapse of FTX, the company run by Sam Bankman-Fried, considered the most brilliant young man in cryptographic transactions and who managed to accumulate a fortune that is disappearing today. To know more about bitcoin, you can visit the Bitcoin Prime official site.

A bankruptcy that took many by surprise

Chaos seems to be the adjective that today describes the digital financial market, the definitive declaration of bankruptcy of the large cryptocurrency FTX turned the young billionaire creator into a user of crypto assets without capital, leaving the main digital currencies hit when their situation seemed to be stable.

The attempt to stop a situation that had already been showing some signs since June that it could get complicated could not maintain the support that had been created in Bitcoin, generating a new earthquake that even caused this digital currency to touch its historical minimum levels.

The near future of digital currencies becomes a bit complex, which undoubtedly makes the crypto winter last for a longer period, giving time for the estimated period in which the cycle comes to an end to occur.

Symptoms of a crypto Black Friday

It is evident that many of the specialists on the subject of digital currencies are in a dilemma since many of the forecasts could be coming to fruition after the shock that is generated in the cryptocurrency market with the fall of the FTX token and with it the company's finances, being compared to the situation that occurred with Lehman Brothers.

Below are some of the most notable signs that led the owner of FTX to not resist such a complicated financial situation.

1 – The sudden rise of FTX

FTX came to stand out among cryptoasset companies after being considered one of the most solid and offering its users the peace of mind of keeping their digital assets safe.

It reached a valuation greater than 30.000 million dollars, in which companies of high financial renown invested their capital, as was the case of SoftBank, which allowed its consolidation after a million-dollar investment of 400 million dollars.

2 – Consolidation among the greats

After carrying out high-level investment transactions, capturing the attention of many high-level investors, they contribute to the positioning of FTX among the main cryptocurrency exchange platforms, placing it among the first four in the world ranking.

3 – The first advertisement

During the month of August, the first statements from the Federal Deposit Insurance Corporation emerged, which stated that the FTX company offered something to its users that was not true, this was related to the support of users' savings by the government of the United States.

Everything is complicated when seeing that the capital injected into the company came from a company that was closely related to the FTT token owned by the same Exchange, which increased the financial valuation of FTX.

All this boils down to the fact that the company, in a few words, charged itself and gave the change to itself; there was no separate management of finances, that is, wrong financial management.

4- Changpeng Zhao's final thrust

The Binance announcement where it published the sale of the tokens that corresponded to the FTX company after the revelations of financial mismanagement, which contributed to the drop of more than 90% in the value of said digital currency, making the critical situation notable. of the Exchange

Conclusion

A situation that no one expected and that undoubtedly ended up breaking the support level that Bitcoin had brought for several months and that is that it had remained stable at a value that was around $20.000, but the adherence to the United States Bankruptcy Law of FTX collapsed the digital financial system.

Bankman-Fried's encouraging position is that it will remain steadfast throughout the process to achieve an organized transition that gets the company back on its feet and can offer trust and security to its users.

The authorities of the Bahamas, the country where FTX's main headquarters is located, began to freeze the company's assets as a financial measure given the situation in which users were affected.

A year after reaching historical highs that allowed many to increase their accounts, today it seems to be the opposite case where thousands of users have withdrawn.