Crypto markets slump as FTX seeks to raise new funds
HONG KONG/SINGAPORE: Cryptocurrency markets nursed heavy losses on Thursday (Nov 10), with bitcoin hovering near a two-year low as investors fretted about the fallout from the implosion of crypto exchange FTX, which was seeking new funds to plug a gaping hole in its finances.Larger rival Binance walked away from a bailout of FTX on Wednesday, sending cryptocurrency prices plunging as hopes for a rescue diminished.On Thursday, FTX head Sam Bankman-Fried told staff in a Slack message seen by Reuters that "for the next week, we will be conducting a raise".A message on the FTX website said that it was no longer processing withdrawals or onboarding new users.
TX's shortfall comes after users rushed to withdraw US$6 billion in crypto tokens from FTX in just 72 hours.Focus among investors is on the unknown size of customer losses and the hit to sentiment from the latest and possibly largest collapse in an industry that has turned into a minefield for investors.FTX's native token, FTT is down 90 per cent this week and was attempting to steady around US$2.90 - not far above its record low around US$1.50.
Bitcoin fell below US$16,000 for the first time since late 2020 overnight and at 12.10am GMT was trading at US$16,310, showing little sign of recovery.The seeds of FTX's downfall were sown months earlier, in mistakes Bankman-Fried made after he stepped in to save other crypto firms, according to interviews with several people close to Bankman-Fried and communications from both FTX and Binance.In Thursday's Slack message, Bankman-Fried said "as one part of the potential above raise, we have had talks with Justin Sun".Justin Sun, founder of cryptocurrency network Tron, said in a tweet on Thursday "we are putting together a solution
