Will the FTX crypto meltdown get worse? According to Binance CEO Changpeng Zhao, "CZ," the crypto market has not yet reached its lowest point since the FTX collapse. He warned that more businesses may go bankrupt in the near future, likening the current cryptocurrency slump to the 2008 global financial crisis. Earlier on Friday, CZ stated that there would be cascading effects on the cryptocurrency industry while speaking at a conference. After hearing that Justin Sun had saved Sam Bankman-Fried, FTX Token (FTT) was able to make a small comeback.
Crypto Crash Comparable to Lehman Brothers' Demise in 2008
According to CZ, given the circumstances surrounding FTX this week, the global financial crisis is a "appropriate comparison" for the fall of FTX. CZ reportedly issued a warning at the conference that more cryptocurrency businesses, particularly those associated with FTX, would experience greater losses in the coming days. On the plus side, the founder of Tron predicted that the cryptocurrency market would eventually recover from the crisis.
“With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected.”
As of this writing, the price of the FTX token is $2.58, a decrease of 22.82% over the previous 24 hours, according to price monitoring site CoinMarketCap. According to market capitalization, FTT is presently number 76, with an almost 90% decline in value over the previous week.
More Crypto Companies to Face Problems on the Foreseeable Future
According to Sun, other cryptocurrency conferences may not report liquidity difficulties for another two weeks. The FTX group recently stated that it had decided to file for voluntary chapter 11 bankruptcy. Sam Bankman-Fried, who earlier expressed regret to the cryptocurrency community for the mayhem that erupted in the crypto market in the form of a price slaughter, has also resigned from his position as FTX CEO. The organization announced that John J. Ray III has been named the FTX Group's new CEO.