These Crypto Firms Are Taking the Lead Following the FTX Fall

Whatever the verdict, the collapse of his digital-asset exchange FTX threatens to rock the underpinnings of the larger crypto industry.

Fearing that their funds would be frozen in place in the event that one of these sites collapsed, cautious investors are withdrawing money from other exchanges. Following FTX's collapse, at least one large cryptocurrency company declared bankruptcy, while two more were compelled to halt some withdrawals. A big default has shaken a decentralized lending project.

The cryptocurrency businesses and initiatives listed below are garnering attention as traders try to predict where weaknesses in the approximately ten markets may surface next.

SOLANA

Bankman-Fried, who backed the coin and its crypto environment, was linked to Solana's token. When contrasted to Bitcoin's fall, which was closer to 15%, the token's decrease since early November has been almost 60%. As part of a group of venture capital businesses, Bankman-Fried had promised to fund Solana projects, along with a pledge of $100 million for blockchain-based gaming developments. The value of gaming currencies in Solana's crypto ecosystem has fallen significantly since early November.

JUMP CRYPTO

A major cryptocurrency merchant and a significant supporter of the Solana crypto space is Jump Crypto, a division of the Chicago-based trading company Jump Trading. A dollar amount for the firm's exposure to the demise of FTX has not been revealed. Jump has stated that it is “fully capitalized,” constantly acquiring and trading, and that its “exposure to FTX was managed in accordance with our risk structure.” Jump also entered Binance's Industry Recovery Initiative and made a preliminary pledge of $25 million.

BINANCE

Binance, symbolized by outspoken CEO Changpeng “CZ” Zhao, emerges as the company's titan in the absence of FTX and with Bankman-Fried imprisoned. The exchange, which lacks a formal office but holds operating permits in numerous countries, gained market share in spot trading to even more than 52%, per statistics from CryptoCompare. Although it has benefitted a little from the collapse of FTX, Binance has additionally been impacted by the general decline in market sentiment. According to Zhao's tweet from Tuesday morning, New York time, withdrawals reached $1.14 billion “today.” Data obtained previously that day by research company Nansen revealed that over the previous week, Binance had experienced net withdrawals of digital content totaling about $3.7 billion.

TETHER

The USDT stablecoin from Tether is a crucial piece of the crypto ecosystem since it allows users to transfer funds across crypto exchanges and acts as a shelter for investors dealing with unpredictable virtual currencies. Its market price of about $67 billion significantly outpaces those of its primary rivals, USDC and BUSD, a stablecoin under the Binance brand. Users hurried to purchase USDT after FTX collapsed in early November, briefly removing the currency from its dollar peg. Since then, circulation has marginally increased and is currently at about $65.79 billion USDT, according to data from WikiBit.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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