Major cryptocurrencies slide like jitters on the FTX stock markets

Major cryptocurrencies slide like jitters on the FTX stock markets

LONDON/SINGAPORE, Nov 8 (Reuters) – Cryptocurrencies fell sharply on Tuesday, with major crypto exchange FTX’s internal token falling by nearly a quarter as investors appeared spooked by talk of pressure on FTX’s finances.

Bitcoin, the largest digital token, fell as much as 6% to $19,351, its lowest level in two weeks, and was on track for its worst day since mid-September. Ether, the next largest, fell over 6%.

FTX came under pressure after Changpeng Zhao, head of rival exchange Binance – the world’s largest – said on Sunday that his firm would to liquidate its FTX token holdings due to unspecified “recent discoveries”.

FTX founder Sam Bankman-Fried said the exchange was “fine” and that the concerns were “false rumours”. FTX had no immediate comment when contacted by Reuters on Tuesday.

The FTX token – which gives holders discounts on FTX trading fees – last fell more than 30% to $15.41, the lowest amount since early 2021. The token, known as FTT, is the 30th largest digital coin by value of $2 billion, according to CoinMarketCap.

Data from analyst firm Nansen showed a one-day net outflow from FTX of about $630 million, suggesting that account holders were also withdrawing their money.

“On-chain analytics show that hundreds of millions have been withdrawn from FTX over the last day,” said Matthew Dibb, chief operating officer of Singapore-based crypto investment manager Stack Funds.

“The question of FTX’s solvency has been raised in light of recent events this year…however, so far we do not see any hard data to support this kind of view.”

Crypto users raised questions on Twitter last week about FTX’s token following a report by news website CoinDesk about leaked balance sheets of Alameda Research, a trading firm founded by Bankman-Fried with close ties to FTX.

Alameda CEO Caroline Ellison said in a tweet Sunday that the “balance sheet information” shows only a subset of Alameda’s corporate entities. Alameda has over $10 billion in assets not shown in the CoinDesk report, she said.

Reuters was unable to independently verify the accuracy of the report, nor the origin of the leaked balance sheet.

Reporting by Tom Westbrook and Tom Wilson in London and Hannah Lang in Washington; Editing by Louise Heavens and Ed Osmond

Our standards: Thomson Reuters Trust Principles.

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