The digital currency ecosystem is trading with massive volatility that was engineered by the collapse and eventual bankruptcy of the FTX derivatives exchange over the past week. The combined crypto market cap has slumped to $837.47 billion, one of its lowest points over the past year.
FTX Token (FTT) visibly induced the breakdown in prices dropping by over 92.33% in the trailing 7 days period to $1.78 according to data from CoinMarketCap. The coin’s collapse mimicked that of Terra (LUNA) which shed 12 months’ gains in just about a week when the TerraUSD (UST) algorithmic stablecoin collapsed earlier in May.
Investors in the industry have lost trust in FTX even before its bankruptcy filing, a move that stirred the withdrawals of funds that precipitated the trading platform’s liquidity crunch. Seeing the bleak future of the company, FTT holders had to sell off the coins on other exchanges also.
How the Top 10 Coins Performed for…
