Home » ftx: FTX bust may be the last straw for Indian crypto investors

ftx: FTX bust may be the last straw for Indian crypto investors

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Indian cryptocurrency investors are losing faith in digital assets. FTX Bankruptcies continue to bring a barrage of negative news.

on monday, cipher Exchange AAX has suspended withdrawals while users of another exchange, Bitcoke, are facing withdrawal issues.Cryptocurrency lender Blockfi suspends withdrawals and even
crypto.com I was dealing with a large number of withdrawals.

And as a corollary, cryptocurrencies continue to whipsaw under uncertainty.

Mumbai-based cryptocurrency investor Ashwin Nadar said, “I have no idea what kind of shady trading these exchanges are doing with our funds. All other exchanges, with the exception of public companies listed on the

Last week, media reports said several things crypto exchange Revealed the state of the reserves by transferring money between them to show that they had enough money.

Read more | Indian Crypto Investors Want More Transparency From Exchanges After FTX Collapse

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Binance CEO Changpeng Zhao announced on November 6th that his exchange has liquidated all FTX tokens (FTT) after reports on Twitter of Alameda Research (an FTX affiliate) balance sheet being unstable. After announcing that it was doing so, the crypto market began to drop.

This led to the market contagion, the second event after the Terra network collapse that severely hit the cryptocurrency ecosystem in the past few months.

On Nov. 11, FTX, which raised $400 million in funding at a $32 billion valuation in January 2022, said:
It said it had filed for bankruptcy protection.

Since then, there have been regular news reports about the extent of damage to cryptocurrency companies, and the market has stalled.

many indian crypto Investors are holding multiple accounts on international exchanges, a trend that has accelerated since the Indian government introduced aggressive cryptocurrency taxation.

Crypto investor and consultant Chahal Verma said he has been telling investors for months not to trust trading with cryptocurrencies. “When you store your cryptocurrencies on an exchange, the exchange holds your keys, not you. And since the space is unregulated, anything can happen. I did,” she said.

Still, cryptocurrency experts say the long-term outlook for cryptocurrencies remains unchanged.

“Bear markets are a cleansing process. Weak companies will perish, but those with good product-market fit and the right business model will grow stronger,” said co-founder of crypto exchange CoinSwitch. Ashish Singhal, Chief Executive Officer, said. “The turmoil over the past few days is due to the exchanges involved’ poor business practices and risk management, and is not a reflection of crypto’s long-term arc,” he added.

Crypto use cases continue to grow globally and in India, including identity and document verification, and tokenization of real-world assets, Singhal noted.

“This adoption rate will only grow as more and more startups develop on public blockchains,” he said. “If anything, recent developments have emphasized the importance of ensuring a level playing field for responsible cryptocurrency businesses, so bad actors can take advantage of the regulatory vacuum that exists in the industry. There is nothing to do.”

Binance on Monday in Key Development
Following the FTX debacle, it announced the creation of an industry recovery fund.

most indian portfolio crypto investor They are in the red after a year of “crypto winter” because most of them jumped on the crypto bandwagon in a raging bull market when the price of most tokens was so high.

Bitcoin was trading at $16,802 as of 5 p.m. Monday, down 74.37% from last November, according to cryptocurrency price tracking website CoinMarketCap. Ethereum was at $1,261.19 (-72.75% vs Nov 2021), Binance Coin at $287.60 (-55.87%), Dogecoin at $0.08871 (-66.27%) and Solana at $14.50 (-93.33%).

November 2021 was the month when many cryptocurrencies hit all-time highs.

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