The cryptocurrency market has continued to tumble Wednesday after Tuesday’s selloff as Binance and FTX, the world’s two biggest crypto exchanges, agreed to merge to address what Binance called a “liquidity crunch.”
FTX saw around $6 billion of withdrawals in the 72 hours before Tuesday morning, according to a message to staff sent by its CEO Sam Bankman-Fried.
“In the last 72 hours, we’ve had roughly $6b of net withdrawals from FTX,” he wrote, adding that withdrawals at FTX’s main unit, FTX.com, are “effectively paused,” an issue that would be resolved in “the near future.”
Bitcoin is 12.07% down trading at $17,308.00, according to the data on Investing.com, at the time of this report.
Ether is also down 22.17% at $1,159.39. Ethereum competitor, Solana is down 41.55%, trading at $16.804.
FTX Token ( FTT) the native token of the FTX trading platform, plunged 76.4% on Tuesday. falling.
Binance had offered to buy FTX’s non-U.S. business for an undisclosed sum. The deal will affect only the non-U.S. businesses of FTX and Binance.
Investor confidence has been shaken after Zhao tweeted over the weekend that the company would sell its holdings of FTT, according to CNBC. Binance is the largest crypto exchange in the world by trading volume and was an early backer of FTX.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.