FTX crisis is driving away crypto giants

FTX earlier reported going through a rough patch of liquidity crunch. Following the announcement, a lot of Crypto firms distanced themselves from FTX, with the majority stating that they had no exposure to the platform or its currency.

Genesis and Crypto.com are the newest additions to a list that includes Circle, Bitpanda, and Tether. Coinbase is maintaining a similar stance during the crisis.

Using its official Twitter account, Genesis said that it had successfully managed the loan book without incurring any significant net credit exposure to any token issued by a centralized exchange. While the word FTX was never used, it was clear that the reference was to the FTX liquidity crunch.

Chief Executive Officer of Crypto.com, Kris Marszalek, did not hesitate to name the platform. Kris informed the community that Crypto.com’s exposure to the FTX situation was negligible, with less than $10 million deposited for trade execution. According to reports, Crypto.com’s global revenue has remained around $1 billion for the past two years. In the announcement, Kris Marszalek states that the amount deposited appears to be less and that the 70 million customers do not have much to worry about.

Brian Armstrong, Coinbase’s chief executive officer, addressed the platform’s position by noting that Coinbase has no significant exposure to FTX or its FTT token.

Bitpanda also highlighted FTX, which ensures the funds are housed in a highly secure environment and remain protected.

The news that Binance intends to acquire FTX’s non-US operations proves to be a turning point in the situation. Binance had previously announced the sale of its FTT token holdings in response to the recent revelation. However, it is not known that Binance might buy a portion of the platform in the near future without affecting its US operations or withdrawals.

In light of recent developments involving Binance and FTX, Binance has signed a non-binding Letter of Intent to acquire the platform’s non-US operations. This action is anticipated to further protect the customers’ interests. The deal will not be finalised until Binance has undertaken Due Diligence in the coming days.

Sam Bankman-Fried confirmed the same by calling it a strategic transaction on Twitter.

Following FTX’s liquidity crisis, the crypto industry is examining recent developments. Genesis and Crypto.com have been added to the list, but it is still widely believed that everyone must step forward in order to restore the trust that has been eroded by the FTX crisis. Kris Marszalek discussed collaboration in this regard and urged regulators to enhance and protect the industry.

There were reports of Binance and FTX going through a rough patch; however, the recent progress between the two has proved that everything is alright. Binance, in fact, remains committed to establishing a more decentralized global economy.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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