By George Ward
According to Binance CEO Changpeng Zhao, the crypto market is yet to reach its worst point following the FTX crash. However, he warned that more companies could go bankrupt soon.
He also drew comparisons between the current cryptocurrency crash and the global financial crash of 2008. CZ predicted at a conference on Friday that the crypto industry would see an impact in stunts.
Following reports that Justin Sun saved Sam Bankman-Fried, FTX Token (FTT) made a slight comeback. The cryptocurrency market is known for dramatic turns, volatile prices, and fortunes that come and go overnight.
News of the collapse of FTX, one of the largest cryptocurrency exchanges in the world, may seem boring or esoteric to people who don’t follow the cryptocurrency market.
But in the cryptocurrency community, it’s already known as the industry’s “Lehman moment.” A reference to the collapse of Lehman Brothers in 2008 sparked a global financial panic and exposed Wall Street’s woes to laypeople.
On Tuesday, investors reacted to recent concerns surrounding the cryptocurrency exchange, making price predictions for the FTX token (FTT) a hot topic. A new study suggests that this activity associated with FTX is based chiefly on FTT tokens.
There was panic across the crypto industry when Binance CEO CZ tweeted that his exchange would liquidate all its holdings of FTT tokens. Following the events that followed the crash of the notable crypto exchange, experts have weighed in on what could transpire in the crypto industry in the next 12 months.
Crypto Crash Comparable To Lehman Brothers Failure In 2008
CZ warned at the conference that more cryptocurrency companies, especially those close to FTX, will suffer more losses in the coming weeks. “We will have cascading impacts as FTX falls. They will suffer, especially those close to the FTX environment.”
According to the price-tracking website CoinMarketCap, FTX’s native token is currently priced at $2.06, down 24.91% over the last 24 hours. Its market cap is down 90% from the previous week. All these factors indicate that the FTT token will likely be on a downward spiral.