Bitcoin price slid to just $15,680 on Tuesday morning, the lowest level in more than two years for the cryptocurrency. And most people expect the price to continue to fall substantially as traders fear that the fallout from the implosion of FTX, once the second largest crypto platform in the world, could have more victims.
FTX filed for bankruptcy on November 11, less than a week after rival CEO Changpeng “CZ” Zhao of Binance attempted to sell more than $500 million of FTX’s native FTT crypto token. CZ couldn’t even cash out the token due to the lack of liquidity on FTX, which accidentally exposed the fact that none of these cryptocurrencies are really worth anything. FTT is currently trading at $1.26, down 97% from a year ago when it was trading at over $50.
FTT was not the only digital currency created by former CEO Sam Bankman-Fried for his companies FTX and Alameda Research. The so-called “JP Morgan of crypto”, as CNBC liked to call it, also created another token called Serum, which was used as real currency instead of the Monopoly money that it actually was. In fact, FTX included $2.2 billion worth of Serum on its balance sheet before it imploded, according to the Financial Times. Whey is currently trading at $0.23, down 12% on the day and 95% down from a year ago.
FTX was previously valued at $32 billion, but it took just a week for it to crash, causing ripple effects that are still being felt across the entire crypto landscape. As an example, cryptocurrency company Gemini is reportedly struggling to raise cash and is warning that it could file for bankruptcy in the future. Gemini had approximately $175 million in an FTX account, according to BloombergNewsmoney you are unlikely to ever see again.
Other major cryptocurrencies besides Bitcoin also tumbled Tuesday morning, including Ethereum, which is currently trading at $1,085, down 2.78% from 24 hours earlier and down 74% from a year ago. Binance’s BNB cryptocurrency, the third most popular coin, is trading at $254, down 1.3% from 24 hours ago and down 55% from a year ago. XRP is trading up 3.6% on the day at $0.36, but is still down more than 65% from a year ago.