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FTX cryptocurrency exchange files for bankruptcy

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FTX cryptocurrency exchange files for bankruptcy

It took lower than every week for FTX to go from the third-largest cryptocurrency alternate on the planet to chapter courtroom.

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The embattled cryptocurrency alternate, quick billions of {dollars}, is looking for chapter safety after the alternate skilled the crypto equal of a financial institution run. FTX, the hedge fund Alameda Analysis, and dozens of different affiliated firms filed a chapter petition in Delaware on Friday morning.

CEO and founder Sam Bankman-Fried has resigned, the corporate stated. Bankman-Fried was lately estimated to be price $23 billion and has been a distinguished political donor to Democrats. His web price has all however evaporated, based on Forbes and Bloomberg, which carefully observe the online price of the world’s richest individuals.

“I used to be shocked to see issues unravel the way in which they did earlier within the week,” Bankman-Fried wrote in a sequence of posts on Twitter.

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FTX’s unraveling is inflicting ripple results. Already firms that backed FTX are writing down their investments. Politicians and regulators are ramping up requires stricter oversight of the crypto business. And this newest disaster has put stress on the costs of bitcoin and different digital currencies. The full market worth of all digital currencies dropped by about $150 billion within the final week, based on CoinMarketCap.com.

FILE – On this picture illustration, the emblem of FTX, a cryptocurrency alternate is displayed on a smartphone display. (Pavlo Gonchar/SOPA Photographs/LightRocket through Getty Photographs)

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Bankman-Fried has different issues as effectively. On Thursday, an individual accustomed to the matter stated the Division of Justice and the Securities and Change Fee had been trying into FTX to find out whether or not any prison exercise or securities offenses had been dedicated. The individual couldn’t focus on particulars of the investigations publicly and spoke to The Related Press on situation of anonymity.

The investigation is centered on the chance that FTX could have used prospects’ deposits to fund bets at Alameda Analysis. In conventional markets, brokers are anticipated to separate consumer funds from different firm belongings. Violations will be punished by regulators.

In its chapter submitting, FTX listed greater than 130 affiliated firms circled across the globe. The corporate valued its belongings between $10 billion to $50 billion, with an analogous estimate for its liabilities. The corporate appointed as its new CEO John Ray III, a long-time chapter litigator who’s greatest recognized for having to wash up the mess made after the collapse of Enron.

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FTX had agreed earlier this week to promote itself to larger rival Binance after experiencing the cryptocurrency equal of a financial institution run. Clients fled the alternate after turning into involved about whether or not FTX had ample capital.

The crypto world had hoped that Binance, the world’s largest crypto alternate, would possibly be capable of rescue FTX and its depositors. Nonetheless, after Binance took a take a look at FTX’s books, it concluded that the smaller alternate’s issues had been too huge to unravel and backed out of the deal.

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FTX is the newest in a sequence of cascading disasters which have shaken the crypto sector, now below intense stress from collapsing costs and circling monetary regulators. Its failure is already being felt all through the crypto universe.

On Thursday, the enterprise capital fund Sequoia Capital stated Thursday it’s writing down its complete funding of practically $215 million in FTX.

The cryptocurrency lender BlockFi introduced on Twitter late Thursday that it’s “not capable of do enterprise as typical” and pausing consumer withdrawals because of FTX’s implosion.

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In a letter posted to its Twitter profile late Thursday, BlockFi — which was bailed out by Bankman-Fried’s FTX early final summer season — stated it was “shocked and dismayed by the information concerning FTX and Alameda.”

The corporate ended by saying any future communications about its standing “shall be much less frequent that what our shoppers and different stakeholders are used to.”

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Bitcoin tumbled instantly after the letter was posted and is buying and selling beneath $17,000. The unique cryptocurrency, bitcoin had been hovering round $20,000 for months earlier than FTX’s issues grew to become public this week, sending it down briefly to round $15,500.

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Reporters Matt Ott and Michael Balsamo in Washington contributed.

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VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

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VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

HONG KONG SAR – Media OutReach Newswire – 13 January 2025 – VT Markets, an award-winning financial services provider, today releases its 2025 Q1 Economic Outlook. The report highlights how the dual tailwind of favourable policies and market dynamics will propel the cryptocurrency sector into a new era of mainstream adoption. The report also underscores the transformative strides achieved by cryptocurrencies in 2024, which sets the stage for further growth in the upcoming year.

2024 As A Landmark Year for Cryptocurrency

With the conclusion of the 2024 U.S. Presidential election, cryptocurrencies have ascended from niche assets to mainstream investment products. Political developments, particularly arising President Trump’s re-election and his pro-cryptocurrency stance, acted as the main catalyst for this phenomenon. Participants observed Bitcoin’s price surging by over 40%, crossing $108,000 by year-end anticipating dovish policy shifts and renewed investor confidence towards the digital asset.

Key regulatory appointments, such as naming crypto advocate Hester Peirce as SEC Chair, signalled to the market a shift towards a more favourable regulatory framework, instilling optimism in institutional and retail investors alike.

The Rise of Spot Bitcoin ETFs

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In early 2024, the U.S. SEC approved multiple spot Bitcoin ETFs; a significant breakthrough for the cryptocurrency industry then. By year-end, assets under management for these ETFs grew from $28.8 billion to $110 billion. Among them, BlackRock’s IBIT ETF stood out, achieving record-breaking $30 billion AUM in under 300 days.

This development not only validated cryptocurrencies as a mainstream investment class but also paved the way for wider institutional participation. The integration of cryptocurrency into traditional finance is seen as a key step toward standardisation – an issue which has plagued the industry since its inception.

Liquidity and Risk Appetite Fuel Growth

Macroeconomic conditions, including the Federal Reserve’s shift towards an easing monetary policy, contributed to increased market liquidity and higher risk asset valuations. Cryptocurrencies, known for their high-risk, high-reward profile, inevitably emerged as a preferred choice for portfolio diversification, further driving their adoption and price momentum.

2025 Will Be A Year of Regulatory Clarity and Technological Innovation

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Looking ahead, the cryptocurrency sector is poised for greater regulatory clarity and broader market acceptance globally:

United States: Expected legislation on stablecoins and other crypto assets will a establish a clear regulatory environment.

European Union: The upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) will enhance transparency and compliance.

Asia-Pacific: Singapore and Hong Kong are set to strengthen their positions as regional crypto hubs, promoting Web3 development and reopening licensing opportunities for exchanges.

Emerging Markets: Countries like Brazil, the UAE, Australia, and South Africa are advancing efforts to legitimize cryptocurrencies, potentially becoming regional leaders in the sector.

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A New Era for Mainstream Cryptocurrency Adoption

The VT Markets’ Research Desk suggests that the confluence of supportive policies, transparent regulations, and robust market conditions will accelerate the mainstream adoption of cryptocurrencies.

They believe that this transition from speculative assets to recognised investment products will be a pivotal moment in financial innovation.

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Hashtag: #VTMarkets #CFDs #CFDsbrokers #cryptocurrency #Bitcoin #bitcointrading

The issuer is solely responsible for the content of this announcement.

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Experts celebrate promising new breed of cryptocurrency: 'Not only promises efficiency …'

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Experts celebrate promising new breed of cryptocurrency: 'Not only promises efficiency …'

An up-and-coming player in the world of cryptocurrency is looking to revolutionize the industry through its unique processes that highlight sustainability.

According to Be3, cryptocurrency XRP, developed by Ripple Labs, could have a “transformative impact on both finance and environmental sustainability” thanks to its unique consensus mechanism that does not require mining and uses a negligible amount of energy even as it scales.

It generates a minuscule amount of pollutants per transaction while producing 1,110 pounds of electronic waste and impacting just over 8 cubic miles of natural resources.

This approach separates XRP from its contemporaries, which often rely on the notoriously power-hungry proof-of-work systems and hulking mining centers that can destabilize the grid.

Statistics provided by TRG Datacenters show that XRP is the second-most eco-friendly cryptocurrency behind IOTA, consuming just 0.0079 kilowatt-hours per transaction. Comparatively, bitcoin ranks last at a staggering 707 KWh per transaction.

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Furthermore, the cryptocurrency became the first major global blockchain to achieve carbon net zero by purchasing enough renewable energy to offset its minimal energy requirements, per the XRP Ledger.

Be3 also noted other features that make XRP an attractive option for institutions focused on environmental responsibility, as it takes just three to five seconds to settle at fractions of a cent per transaction.

It’s a welcome addition to a sector that desperately needs more sustainable options. A study by the International Monetary Fund found that crypto mines, in conjunction with artificial intelligence data centers, accounted for 2% of global electricity demand and 1% of carbon dioxide pollution in 2022.

The United Nations found that the bitcoin mining network used 173.42 terawatt-hours of electricity between 2020 and 2021, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal. 

Coal and natural gas also supplied 66% of the energy for mining operations during this period, polluting the planet with planet-warming gases.

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Luckily, the sector has made significant strides in recent times in an effort to become more eco-friendly. 

Alephium, which utilizes a proof-of-work blockchain, has partnered with Gigatons to implement a proof-of-less-work consensus that is significantly more energy efficient. 

Meanwhile, Ethereum has transitioned to a proof-of-stake system that has cut its energy consumption by nearly 100%.

“In a world increasingly attentive to environmental impact, XRP’s innovative technology not only promises efficiency but also a greener future,” Be3 wrote.

Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.

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ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions

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ZIUM Launches to Revolutionize Instagram and Cryptocurrency Solutions

Zagreb, Croatia–(Newsfile Corp. – January 12, 2025) – ZIUM, a cutting-edge agency founded to tackle some of the most pressing challenges in social media and digital marketing, is now officially open for business. Specializing in Instagram username claims, account unbans, and cryptocurrency marketing, ZIUM has positioned itself as a trusted partner for individuals and businesses seeking innovative solutions in the digital age.

The agency operates at the intersection of technology, social media, and blockchain marketing, empowering clients to unlock their full potential online. With a dedicated team of experts and a results-driven approach, ZIUM is redefining the way people navigate the ever-changing online landscape.


ZIUM

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A New Era of Digital Problem Solving
ZIUM’s services address real-world challenges in today’s digital ecosystem. Instagram, one of the largest and most influential social platforms, has become a critical tool for personal branding, business promotion, and community engagement. However, issues such as unavailable usernames or unfair account suspensions can hinder growth and cause frustration. ZIUM steps in to provide solutions that are fast, efficient, and tailored to each client’s needs.

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Additionally, ZIUM excels in cryptocurrency marketing, offering projects and startups a strategic edge in the fast-paced blockchain industry. By combining deep knowledge of crypto trends with cutting-edge marketing strategies, the agency helps blockchain projects stand out in an increasingly crowded market.

Core Services Offered by ZIUM

  1. Instagram Username Claims
    In the crowded social media space, having the perfect Instagram username can make all the difference. Whether it’s for a brand, influencer, or business, ZIUM specializes in acquiring sought-after usernames to align with clients’ goals and identities. The agency handles the process from start to finish, ensuring a smooth and hassle-free experience.

  2. Instagram Account Unbans
    Account suspensions on Instagram can be devastating, especially for businesses and influencers relying on the platform for engagement and revenue. ZIUM offers expert account recovery services, helping clients navigate Instagram’s policies to regain access to their accounts quickly and effectively.

  3. Cryptocurrency Marketing
    The cryptocurrency space is highly competitive, and visibility is key. ZIUM provides end-to-end marketing strategies tailored to blockchain projects, ensuring they reach the right audience. From brand development to targeted campaigns, ZIUM helps crypto ventures grow and thrive in an ever-evolving market.

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