Major coins are plummeting: Solana crashes 40%+ to under $17, bitcoin drops 10%+ to ~$17,000, its lowest since November 2020, and ether drops 20%+ to ~$1,150
The market had already endured a June washout in which bitcoin, ether and Solana all fell sharply, including a drop below $1 trillion in total crypto market value. The current move ties a renewed, deeper selloff to stress around FTX and Binance’s proposed purchase of FTX’s non-U.S. unit.
The pressure did not stop with the announcement: the next day, bitcoin, ether and Solana fell further, while later coverage explicitly identified the FTX saga and possible contagion as drivers of continued weakness.
First-order effects
FTX’s non-U.S. unit is immediately subject to a prospective Binance acquisition, while the plunge in FTX’s token intensifies pressure on the exchange at the center of the turmoil.
Bitcoin, ether and Solana holders absorb a synchronized repricing, with Solana posting the steepest decline among the three named assets.
Second-order effects
Binance becomes the focal point for whether FTX’s non-U.S. operations can be transferred, concentrating market attention on a rival exchange rather than on token-specific developments.
The subsequent FTX-linked decline in bitcoin and ether shows that stress at one exchange was being priced across major crypto assets, not confined to FTX’s token.
Third-order effects
If exchange-specific distress repeatedly triggers broad token selloffs, crypto market risk becomes more dependent on the financial resilience and ownership concentration of trading venues.
A pattern in which potential contagion moves bitcoin, ether and Solana together would make exchange failures a recurring source of market-wide repricing rather than isolated company events.
The trend: Crypto markets are becoming more sensitive to exchange-level counterparty risk, with consolidation bids and perceived contagion shaping prices across major tokens.
To adjust to recent price fluctuations, #Binance has topped up the #SAFU insurance fund to $1 billion USD equivalent again. BUSD AND BNB address about 700m: https://bscscan.com/... BTC address 300m: https://blockchair.com/... Transparency. 1/2
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.
15/ Finally, as someone who's been involved in this industry for 10 years, it is disappointing that a technology that was spawned in reaction to the Lehman Bros moment of 2008 has given rise to its own version of the same. We can do better.
If you bought Bitcoin on December 15, 2017, you are now down 7% over ~5 years. If you bought the S&P 500 on that day, you are up 44% over ~5 years. https://twitter.com/...
Solana Whale (3oSE9CtGMQeAdtkm2U3ENhEpkFMfvrckJMA8Qw VsuRbE) is in liquidation and currently has 2,450,418.5 SOL (worth over $51 million) in collateral and 44,871,609.6 USDC in debt. However, Solana is currently facing congestion due to the update of the oracle. https://twitter.c…
Last one blew up so I'll keep updating. More than double $SOL to be liquidated now almost $1B. Wonder if Alameda is just unlocking it all. https://twitter.com/... https://twitter.com/...
1/ First off, I have a lot of sympathy for everyone involved in the current situation with FTX - it's stressful any time there is potential for customer loss.
3/ I think it's important to reinforce what differentiates Coinbase in a moment like this. This event appears to be the result of risky business practices, including conflicts of interest between deeply intertwined entities, and mis-use of customer funds (lending user assets).
I've had my gripes with Coinbase (eg their listing practices that continued for far too long), but the below is true & needed, and Brian's support of DeFi, Ethereum, and blockchain ethos altogether as critical complements to his business has been solid. Credit where it's due. htt…
They have had their slip ups for sure, but Coinbase is by far the best large actor in the space. It is insane that “we don't mess with our customers' funds” is still a differentiator in the space. https://twitter.com/...
6/ We are incorporated in the US, and publicly listed in the US because we believe that transparency and trust are so important. Every investor and customer can see our public audited financials, which shows how we hold customer funds. We've never issued an exchange token.
Reminder: @BestBuy has #Ledger in-stock at every store in America (buy online, pick up in store if you want to be sure) for anyone who needs one immediately. Also, 10% off at https://shop.ledger.com/ if you want to order direct. https://twitter.com/...