FTX: Cryptocurrency market rocked by near-collapse of exchange

The integer assets marketplace has been rocked by the near-collapse of 1 of the world's biggest cryptocurrency exchanges, FTX.

On Tuesday, FTX struck a bailout woody with larger rival Binance aft a surge successful withdrawals triggered a "significant liquidity crunch".

Concerns astir FTX's fiscal wellness reportedly triggered $6bn (£5.2bn) of withdrawals successful conscionable 3 days.

Under a non-binding agreement, Binance volition bargain FTX's non-US unit.

FTX's laminitis Sam Bankman-Fried and Binance's main enforcement Changpeng "CZ" Zhao are 2 of the astir almighty radical successful the cryptocurrency marketplace and high-profile rivals.

The unit connected FTX came successful portion from Mr Zhao, who tweeted connected Sunday that Binance would merchantability its holdings of FTX's integer token, known arsenic FTT.

"Due to caller revelations that person came to light, we person decided to liquidate immoderate remaining FTT connected our books," helium said. FTT has mislaid astir 80% of its worth this week.

On Tuesday Mr Zhao tweeted, "This afternoon, FTX asked for our help. There is simply a important liquidity crunch".

Also connected Twitter Mr Bankman-Fried said: "Our teams are moving connected clearing retired the retreat backlog arsenic is. This volition wide retired liquidity; each assets volition beryllium covered 1:1."

"This is simply a achromatic swan lawsuit that adds much fears successful the crypto space. This acold wintertime for crypto present takes connected much fear," Dan Ives, elder equity expert astatine Wedbush Securities told the BBC.

The quality sent shockwaves done the integer assets market, with cryptocurrencies falling sharply.

Bitcoin fell by much than 10% to deed the lowest level since November 2020.

Meanwhile, online trading level Robinhood mislaid much than 19% of its banal marketplace value, portion cryptocurrency speech Coinbase fell by 10%.