Cryptocurrency prices have nosedived amid the ongoing FTX collapse, with multiple prominent stablecoins depegging across exchanges.
News of the FTX bankruptcy has triggered massive market volatility due to huge levels of redemptions totalling over $600 million. Tether (USDT), temporarily fell slightly to $0.97 USD on Thursday.
Currently, USDT has regained some of its value after climbing to $0.998, data from CoinMarketCap shows. Additional stablecoins such as TrueUSD (TUSD) and BinanceUSD (BUSD) also tumbled slightly to $0.98 following the news.
.@HuobiGlobal @Poloniex @usddio does not have any investment or exposure in FTX. User assets reserve rate is over 100% (because we are making money) Huobi has completed over 30 B USD of user funds redemption from mainland China withdrawals.
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 12, 2022
The news comes amid accusations that Sam Bankman-Fried, former FTX chief executive, shorted USDD as users began a massive bank run on the exchange on Thursday.
Most stablecoins have regained their $1.00 peg, with markets gaining 5 percent in total capitalisation, or $900 billion, according to data.
FTX Collapse, Bankruptcy
FTX filed for Chapter 11 bankruptcy protection in the US, the company said in a recent tweet. Sam Bankman-Fried also resigned as company chief executive following the news, with John J Ray III stepping in to fill the role amid the firm’s difficult transition.
Press Release: Clarification on Certain Entities Not Included in Chapter 11 Filings. pic.twitter.com/rxmY2f2iTB
— FTX (@FTX_Official) November 12, 2022
FTX currently has roughly 130 affiliated companies such as Alameda Research and numerous subsidiary branches worldwide. According to the company’s bankruptcy procedures, it has 100,000 creditors, up to $50 billion in assets, and similar liabilities.
