Crypto exchange Binance backs out of deal to buy FTX

For several days now, the cryptocurrency market has been under pressure due to the threat of bankruptcy of FTX.

Investors fear the so-called domino effect when the collapse of one company threatens the existence of others.

The situation could be corrected by a deal with Binance. However, at the last moment, the company, for a number of reasons, refused to acquire a toxic asset.

The markets reacted accordingly: BTC/USD falls below $16,000 and FTT/USD depreciates to $2.

In the future, the negative consequences of the collapse of FTX will be disentangled by the entire industry. The hardest thing will be to regain investor confidence. In addition, regulatory pressure will undoubtedly increase.

How to save FTX?

According to some reports, the company needs additional financing in the amount of $4 billion, with a total "hole" that, according to various estimates, is about $8 billion.

What can be said for sure?

1. The FTX story will no doubt lead to tighter oversight of the industry. The head of the SEC back in July said that the public will only benefit from increased control in the field of digital assets.

2. Sooner or later, the industry will recover from losses. In the end, the risks here are clear. But so are the benefits. And then everyone will think about the moment at which it is worth starting to buy assets that have suddenly fallen in price. Of course, it is not necessary to give price levels for bitcoin and other assets. But the money generated from panic selling alts has to go back somewhere. And where should they return, if not to bitcoin?

3. And finally: everything that happened is not something super-exclusive. Of course, everyone is a little shocked, but those who are deeply in the subject allowed such a development. That’s who you definitely don’t envy, it’s those crypto-investors who acquire various assets on the occasion of the general hype, without an independent assessment of the situation.