Six billion dollars of withdrawals in 72 hours have sent cryptocurrency exchange FTX into the arms of larger rival Binance and crypto markets into a new tailspin.
"We are in the best of hands," FTX founder Sam Bankman-Fried said on Twitter, after announcing a bailout that has not quite soothed market jitters. Bitcoin was falling in Asia on Wednesday, so was FTX's collapsing token and Binance's token had the wobbles.Just a few months ago it was FTX scooping up wounded competitors at a discount. Its fall is perhaps another case of the cautionary "stadium curse".
As Spectra Markets' Brent Donnelly and others have previously noted, naming rights are a reasonable signal of irrational exuberance. Enron's 30-year rights deal for a baseball field in Houston lasted three years. FTX's 19-year deal for naming rights at the Miami Heat basketball team's home arena looks to face a similar fate, as does its sponsorship of the Mercedes F1 team. Spillover to other asset classes is so far limited.
Currency markets were calm in Asia trade, with investors waiting for more conclusive results from the U.S. midterm elections - which could take days - and positioning ahead of U.S. inflation data on Thursday.
What a 🤡 I hope FBI will arrest SBF_FTX sooner and not let him get away with the crime.
DogecoinToTheMoon
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