I usually don’t send out a double header, but this news is a pretty big one.
FTX, has hemorrhaging money. Two days ago, the cryptocurrency exchange was close to completing a deal where its larger rival, Binance, would purchase FTX’s non-US held operations. FTX was facing a liquidity crunch and couldn’t support trades on its platform. Yesterday, $6 billion was withdrawn from the platform as investors got spooked by news that Binance was considering walking away from the deal.
Binance signed a non-binding agreement and has had a change of thought about the deal. Cryptocurrencies have lost value since the announcement. Bitcoin is down 5% at $17k, Ether is down since it’s lowest point in August.
The story is still developing.
With inflation high as Hell, the Federal Reserve trying to make a self-fulfilling recession come true, and technology companies finally being held to fundamentals. Cryptocurrencies and meme stocks (most stocks) aren’t backed by much. Just be careful about where you’re parking your money. There’s no such thing as a guaranteed thing.