UPDATE 1-Cryptocurrencies slide as concerns over FTX exchange rattle markets

2 weeks ago 15

SINGAPORE/LONDON, Nov 8 (Reuters) - Cryptocurrencies fell heavy connected Tuesday and the in-house token of large crypto speech FTX slumped by implicit 15% arsenic investors appeared to instrumentality fright astatine speech of unit connected FTX's financials.

Bitcoin , the biggest cryptocurrency by marketplace value, consciousness arsenic overmuch arsenic 6% to $19,351, its lowest successful 2 weeks, and was connected people for its worst time successful since mid-September. Ether , the adjacent largest, fell implicit 5%.

FTX has travel nether unit aft Changpeng Zhao, caput of rival speech Binance - the world's largest - said connected Sunday his steadfast would liquidate its holdings of the FTX token owed to unspecified "recent revelations".

FTX laminitis Sam Bankman-Fried said that 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 - which gives holders discounts connected FTX trading fees - was past down astir 20% astatine $17.73, its lowest since aboriginal 2021.

Figures from analytics steadfast Nansen showed a one-day nett outflow from FTX of astir $630 million, suggesting 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 users 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"On-chain analytics amusement hundreds of millions being withdrawn from FTX implicit the past day," said Matthew Dibb, main operating serviceman of Singapore-based crypto concern manager Stack Funds.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 Westbrok and Tom Wilson successful London; Editing by Louise Heavens and Ed Osmond

Our Standards: The Thomson Reuters Trust Principles.

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