Is FTX (down 22% today) Another Celsius Collapse?

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Last Updated on 8 November 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Something is moving for FTT, the coin of crypto platform FTX founded by Sam Bankman-Fried. After users on social media sites like Twitter and Reddit sounded the alarm over withdrawals that were being paused and messages from the platform stating ‘everything is fine’, some panicked and thought we faced another Celsius-styled collapse.

One user even said that:

Telling everyone how fine you are is the first red flag you are not.

Binance

Some claim that the issues come as the major US exchange faces liquidations of its native FTT token as a result of an unspoken feud with rival exchange and blockchain developer Binance, still the biggest crypto company in the world.

Over at Binance, CEO Changpeng Zhao claimed over the weekend that because of “recent revelations that have came to light,” Binance would now be liquidating their entire holding of FTT.

When asked by some of his followers whether such a move was not too quick, CZ said that this was a type of risk management with lessons gained from the Celsius collapse earlier this year.

Sam Bankman-Fried meanwhile responded to the market rumors swirling on social media, stating that:

A bunch of unfounded rumors have been circulating. We’ve already processed billions of dollars of deposits/withdrawals today; we’ll keep going.  (Taking up anti-spam checks to process more–sorry if you got those.  We’re hitting node rate capacity, will keep going.)  Also tons of USD <> stablecoin conversions going on.

The cryptosphere is crossing it’s fingers that all will be well in the end. We all realize that another major crypto company collapse is something which is better avoided at this point.