After the FTX crash, the altcoin price continues to be cluttered amid the risks of falling to zero. Binance CEO CZ and Ethereum co-founder Vitalik Buterin will collaborate on a new proof-of-reserve mechanism. As the market dances to the tune of FTX’s collapse, CZ is announcing a fund to help struggling crypto projects.
FTX crashed, altcoin price going to zero!
FTT price has been deep in the red for almost a week since its native platform, FTX, exploded. cryptocoin.com As you follow, the crash devastated almost the entire cryptocurrency market. In just a few days, the altcoin price has dropped almost 99%. Meanwhile, at press time, FTT stands at $1.26. Investors and crypto-related businesses have yet to recover from the impact of the FTX explosion. Many count the potential losses to millions of dollars due to exposure to FTX, Alameda and affiliates.
Hbit, a Hong Kong-based crypto platform, has reported approximately $18.1 million stuck in currently bankrupt FTX. According to the exchange, $13.20 million of the funds were client deposits, while the remaining $4.90 million was in Hbit assets. Other losing exchanges include Crypto.com for $10 million and Genesis for $175 million.
Binance charts the path forward from the FTX crash
Binance CEO Changpeng Zhao (CZ) said at the AMA forum on Monday that his exchange will collaborate with Ethereum co-founder Vitalik Buterin to launch a new proof. He announced that they will develop the proof-of-reserve mechanism for transparency in the industry. Following the development, Binance announced that it has almost $70 billion in reserves.
Meanwhile, CZ has announced a fund for crypto businesses that have been badly hit by the liquidity crunch in FTX. With the effect of this news, the crypto market also saw the green on Monday. At the AMA, the CEO said that four or five funds have already arrived for recovery funds. But calls for help from portfolio companies weren’t that loud.
What’s next for the crypto market?
Shock waves in the crypto industry from FTX will have far-reaching effects. That’s why no one expects it to disappear anytime soon. CZ acknowledges that this could be a long crypto winter with a possible significant recovery. Remember, aside from the crypto market woes, global economies are still grappling with inflation and other uncertainties that could further stifle growth.
The drop in altcoin price seems unstoppable
FTT price was trading around $24.00 at the beginning of November. It then looked like it had bottomed out at $20.00. However, the explosion of FTX turned the altcoin price upside down. Other cryptocurrencies seem to have exhausted their bearish trend for now. However, FTT continues to dive deeper into the murky red waters.
FTT weekly chartThe altcoin is hovering at $1.26 at press time. Also, it does not give hope for a recovery. FTT is highly likely to end its journey at zero unless investors change sentiment quickly to positive.
