According to a report made public on November 18 by CoinGecko, between October 23 and November 15, 2022, users withdrew funds from a centralized cryptocurrency exchange (CEX).
Approximately $20.7 billion was withdrawn from CEX, from $123.6 billion on November 2 to $102.8 billion on November 13. In less than two weeks, the CEX balance of the top six major cryptocurrencies fell by a large amount of approximately 16.8%.
Customer anxiety began when Coindesk published a report alleging that the leaked balance sheet of trading company Alameda Research showed it could be at huge risk because of its dependence on into FTX’s FTT token.
After that, the FTT token saw the biggest sell-off in history when the Binance CEO announced that he wanted to withdraw all his investment with selling all of FTT. This is what caused FTX to have a financial crisis.
However, after the collapse of FTX, there was a lot of evidence that the cause of its rapid demise was largely due to financial vulnerabilities, and who was most responsible for the mess. This person is none other than former CEO Sam Bankman-Fried.
According to Coingecko, from November 2 to 8, the total crypto exchange balance dropped by $5.3 billion to reach a total of $118.2 billion. From November 6 to 8, the reduced CEX balance was recorded at $8.3 billion. This reduction represents the amount that users have completely withdrawn from centralized crypto exchanges, due to concerns about potential contagion effects.
Currently, the destructive power of FTX’s collapse is still sending the market into turmoil, with many crypto funds and companies and the projects that come into contact with it. Besides, customers’ money is also being locked during bankruptcy proceedings.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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