The FTX saga has brought about many updates for the crypto industry in the past week, one of which was the destabilization of most major stablecoins like Tether and Tron based tokens. Now days after the first wave of FTX bankruptcy, over $8 billion dollar worth of Bitcoin, Ether and other stablecoins have been withdrawn from exchanges.
Last week Binance CEO, Changpeng Zhao, announced his concern over the condition of FTX. right after his statement $3.7 billion worth of Bitcoin was pulled off from centralized exchanges. After that, there was more to come when about $2.5 billion Ether and about $2 billion worth of stablecoins also left the exchanges.
◽️Want to buy and sell Ethereum at the best price? Visit: buy and sell ETH
The process of FTX withdrawals have been put off because of the liquidity issues. The withdrawals were suspended till a few days ago when the crypto exchange resumed its withdrawals but only for Bahamian customers. In a Tweet on Nov. 10 the company said:
"Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds," the company said. "As such, you may have seen some withdrawals processed by FTX recently as we complied with the regulators."
With several other crypto exchanges like CryptoCom and Gate, being suspicious of having liquidity issues, investors are eventually losing confidence in centralized exchanges and pulling out their funds one after the other. This is to the point that last Wednesday over 80,000 BTC had left exchanges within a 24-hour period, only one day after the crypto exchange FTX suspended user withdrawals.
A while ago, FTX CEO, Sam Bankman-Fried, said that the company is making an effort to raise the liquidity of the exchange, asking help from other parties without mentioning anything about the users’ recent withdrawals.
◽️Looking for the latest cryptocurrency price? Visit: latest crypto price
His Tweet on Wednesday morning reads:
“So, right now, we’re spending the week doing everything we can to raise liquidity, I can’t make any promises about that. But I’m going to try. And give anything I have [too] if that will make it work.”
This is while yesterday FTX saw $1.7 billion worth of volume, even though it lost most of its trading pairs within 6 hours.