The situation for the FTX exchange and the FTX Token (FTT) keeps on becoming complicated with every passing day. The damage caused to the FTX exchange seems to be beyond fixing.
Damage beyond Repair
Despite the efforts of finding the key investors, FTX has failed to find any success. As the investors have continued withdrawing from their funds in FTT, the platform is getting buried under a lot of debt.
Therefore, the exchange had no choice but to file for bankruptcy. Prior to announcing its next course of action and confirming that it was going bankrupt, FTX had reportedly halted withdrawals for the users.
This has left many investors begging to get their funds out of the exchange but all has gone in vain. Even the users who have been able to withdraw their funds through the Tron-based tokens are taking losses.
Amidst all this chaos, FTX US has hinted that it may also proceed with halting the withdrawal access for the users. Good thing for the users, the exchange has hinted at its intentions prior to making it happen.
Even if the users are able to withdraw their funds from FTX US, FTT and the company would still be losing a lot in the process.
Sam Bankman-Fried Turned out to be a Disappointment
The founder of FTX, Sam Bank-Fred (aka SBF), had communicated that only the FTX international exchange would be impacted. The rest of the FTX entities and subsidiaries would continue functioning as normal.
Turns out, SBF has let down the FTX community once again with his claim. When the FTX matter was first highlighted, SBF had assured investors their funds were safe and they had not paused any withdrawals.
He even claimed that in case the platform crashed, they had enough to compensate every investor. Unfortunately, SBF either misled people or over-calculated its resources in every case.
Things have been nothing but all-out chaos for the entire FTX brand and its impact is being felt throughout the cryptocurrency industry.
FTX US Serves Millions of US Investors
Even in the case of FTX US, SBF made wrong claims or miscalculated many things that were happening in the background.
He initially claimed that all of the US-based investors on FTX US were safe claiming that the exchange was 100% liquid.
He even claimed that every user would be able to withdraw 100% of their funds incurring the usual charges/fees.
Now, even the FTX US exchange has become a nightmare for US-based crypto investors as it has hinted at pausing the withdrawals.
In the past 7-days, FTT had already lost 91.98% of its overall value. However, the recent developments have also dealt a massive low blow to the digital asset, dragging it down by 11.31% in the past 24 hours.
At the time of writing, FTT is trading at a low of $1.89, 97.77% lower from its September 9, 2021, all-time high of $85.02.