Panic sell on the cryptocurrency market amid FTT and macro risks

The cryptocurrency market witnessed a panic selling as investors fear over insolvency rumours of crypto exchange FTX. The Bahamian company’s native token FTT has nosedived on exchanges. FTT tokens are under pressure despite FTX’s founder Sam Bankman-Fried denying the rumours. The largest cryptos Bitcoin and Ethereum plummeted drastically weighing on the overall performance of the market.

At the time of writing, on CoinMarketCap, the global crypto market cap is around $984.18 billion — declining by 4.07% from the last day. On the other hand, in volume terms, the market soared by 46.68% over the last 24 hours to $118.03 billion. Bitcoin‘s dominance dipped by 0.24% in the last 24 hours to 38.58%.

Currently, the largest cryptocurrency Bitcoin is trading at $19,776 down by 4.7%. While the second largest Ethereum dipped by 5% to trade around $1,491. Both BTC and ETH have now recorded nearly 4% and 6.4% drops on a weekly basis.

Among the top 10 cryptocurrencies, in percentage terms, Dogecoin was the worst hit contracting by over 10%, followed by XRP shedding nearly 6% on Tuesday. DOGE’s weekly drop is now over 34%, while XRP slipped by nearly 5% in 7 days. Other cryptocurrencies like Tether, USD Coin, and Binance USD are trading broadly flat. Binance’s token BNB is performing volatile, however, in 7 days, the crypto has surged nearly 2%.

FTX’s token FTT nosedived by nearly 20%. It was the top trending cryptocurrency in the market. FTX is struggling to hold its $18 mark. Its weekly drop is more than 30%, while in a month, the token’s downturn is over 24%.

Investors are offloading FTT tokens on insolvency rumours after a CoinDesk report revealed that Alameda Research’s balance sheet was heavily stacked with FTT tokens.

As per the report, Alameda has assets approximately worth $14.6 billion. It stated that Alameda’s largest assets were $3.66 billion and locked in FTT, while its third largest assets were worth around $2.16 billion in FTT collateral. That being said, more than $5 billion of Alameda’s assets are FTT — which raised questions about its solvency. Alameda is the sister company of FTX.

Following the news, FTX founder and CEO Sam Bankman-Fried have been criticised over his regulatory proposals.

A crypto analyst Miles Deutscher tweeted saying that Sam Bankman-Fried was once admired as the king of crypto. Now Alameda and FTX are rumoured to be on the brink of insolvency.

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