Cryptocurrencies slide as concerns over FTX exchange rattle markets

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SINGAPORE (Reuters) - Cryptocurrencies fell heavy connected Tuesday and the autochthonal token of crypto speech FTX collapsed by 15% arsenic investors appeared to instrumentality fright astatine speech of unit connected FTX’s financials.

FILE PHOTO: Representations of cryptocurrency Bitcoin, Ethereum and Dash plunge into h2o successful this illustration taken, May 23, 2022. REUTERS/Dado Ruvic

Bitcoin, the biggest cryptocurrency by marketplace value, was down 4% astatine $19,750 and was having its worst time successful astir 2 months. Ether, the adjacent largest, fell 5%.

FTX has travel nether unit aft the caput of rival speech Binance said connected Sunday his steadfast would liquidate its holdings of the FTX token owed to unspecified “recent revelations”.

FTX laminitis Sam Bankman-Fried said the speech was “fine” and that concerns were “false rumours”. The steadfast had nary contiguous remark erstwhile contacted by Reuters connected Tuesday.

However the FTX token was past down astir 15% astatine $18.76 and figures from analytics steadfast Nansen showing a one-day nett outflow from FTX of astir $630 cardinal suggested relationship holders were besides getting their wealth out.

“With FTT headed south, beneath a large enactment level ... (there are) monolithic withdrawals retired of FTX, crossed aggregate assets,” said Justin d’Anethan institutional, income manager astatine integer plus steadfast Amber Group.

“It seems similar investors are selling assets oregon withdrawing them retired - astir apt volition beryllium a messy week.”

Crypto enthusiasts had raised questions connected Twitter past week astir FTX’s token, pursuing a study from quality website CoinDesk astir a leaked equilibrium expanse from Alameda Research, a trading steadfast founded by Bankman-Fried that has adjacent ties with FTX.

Reuters was incapable to independently verify the accuracy of the study oregon the root of the leaked equilibrium sheet, but it seems to person astatine slightest rattled fragile marketplace confidence.

“On-chain analytics amusement hundreds of millions being withdrawn from FTX implicit the past day,” said Matthew Dibb, main operating serviceman of Singapore-based crypto concern manager Stack Funds.

“The question of solvency of FTX has been raised fixed caller events this twelvemonth ... nevertheless we don’t spot immoderate hard information arsenic yet that would corroborate this benignant of view.”

Reporting by Tom Westbrook, Editing by Louise Heavens and Ed Osmond


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