Quantitative Trading Firm and Venture Capital Arm Take Down Websites
The websites for the quantitative trading firm and the venture capital arm have been taken down and made private.
It is unclear what exactly is happening with FTX, but it appears that the company is in the midst of a liquidity crisis and a pending acquisition by its rival Binance. Websites for FTX and its associated entities have been taken down, but it is not clear if this is a temporary measure or a permanent change. FTX's main site and FTX US's website remain accessible for now, but it is unclear what the future holds for the company.
This is a developing story. Cointelegraph has reached out to Alameda for comment, but has not yet received a response. According to unconfirmed reports, most of FTX's legal and compliance staff have quit as of Tuesday evening.
It is clear that the recent announcement of a liquidity crunch at FTX was made in response to customer concerns. SBF has stated that client assets are safe, and that the exchange has not invested in any risky assets. This should provide some reassurance to FTX customers. However, it is still unclear how this liquidity crunch will impact the operations of the exchange.
The Binance liquidation event has caused many investors to lose faith in the FTX token. The token has lost 87.11% of its value in just seven days, and it is unclear where the bottom may be. This event may cause other exchanges to re-evaluate their own positions in FTX, and could lead to more selling pressure in the days and weeks to come.
As FTX's shareholders learned about the agreement with Binance via Twitter, SBF acknowledged he has no idea what exactly the agreement means. He apologized for being "hard to contact" in the past days and said he will be "quite swamped" in the coming days. He promised to write again when he has time.
It is still unclear what the next steps will be for Binance. According to the Wall Street Journal, the company is performing due diligence and may decide to walk away from the deal after reviewing the company's structure and finances. However, it is still unclear what Binance's final decision will be.
As more and more institutional investors move into the cryptocurrency space, it's clear that the industry is here to stay. FTX is one of the leading exchanges in the space, and their recent round of funding from some of the biggest names in venture capital is a testament to that. With the backing of Temasek, Sequoia Capital, BlackRock, SoftBank, and more, FTX is well positioned to continue growing and innovating in the space.
