The crypto market decline has continued due to the well-documented collapse of FTX. The cumulative market cap has dropped by another 5.5% over the past day - it now stands at around $801 billion. While traders are increasingly uncertain about the market, the 24-hour trading volume is up by 28%, standing at $64.1 billion.
During the weekend, an announcement from Binance CEO Changpeng Zhao triggered an immediate rise in the price of Bitcoin and the overall crypto markets. CZ said he’s forming an “industry recovery fund” to support companies and projects that are struggling with liquidity in the aftermath of the collapse of FTX. However, some of the weekend’s gains have since been eroded amidst more uncertainty and fear.
The stock market rally was mostly ailing last week but roared back Thursday thanks to the cooler-than-expected inflation report. China also eased Covid restrictions on Friday, providing another boost to stocks and commodities. The Dow Jones Industrial Average gained 4.15% last week while the S&P 500 and Nasdaq composite surged by 5.9%and 8.1% respectively!
What you need to know
During the weekend, FTX and its U.S. subsidiary, FTX US, became victims of an attack that drained hundreds of millions of dollars in crypto out of the exchanges' wallets. Crypto exchanges Binance and Huobi scrambled to block deposits of FTT, FTX's native tokens, after about $400 million of the tokens were unexpectedly released out of schedule, with no official explanation.
In response to the sudden movement of funds out of FTX and FTX US wallets, Tether took a protective measure by blacklisting USDT related to the FTX wallet drainer. Almost $600 million in tokens were transferred out of wallets with stablecoins withdrawals swapped from Tether to DAI and other tokens swapped to Ethereum.
Elsewhere, Crypto.com reportedly saw a massive pullout by investors over the weekend as the company’s CEO, Kris Marszalek admitted to mishandling a $400 million transaction. His comments have failed to regain the confidence of the investors as its native token, Cronos price has dropped by a massive 50% in the last 7 days. The saga has generated speculation on the financial health of crypto.com - claims that Marszalek has been quick to dismiss.