As strong and well-established platforms are rumoured to be exposed to the FTX collapse, the contagion is just spreading out. Initially, Crypto.com was rumoured to go bankrupt but in a recent update BlockFi, a crypto trading platform filed for bankruptcy. BlockFi admitted to FTX exposure as it had provided a $400 million revolving credit facility to FTX and an option to buy the company for up to $240 million.
Therefore, the platform halted the withdrawal of customers as they could no longer conduct business as usual. However, the FTX effect is predicted to be more intense which may drag the entire crypto space to a very low level that may take years to recover from. The next platform believed to be affected is Crypto.com, despite denials from the CEO.
However, it has to be noted that BlockFi also had denied earlier but admitted later.
Cryptoverse is very confident about the upcoming results and believes Crypto.com to be the next. Apart from Crypto.com, crypto giants such as Gate, Huobi, Bybit, Gemini etc are also rumored to be in deep water. So, it is believed that the effect will last for another 6 months and some results will be forthcoming. Furthermore, user inclination towards DeFi is on the rise due to growing distrust of centralized exchanges.
Therefore, may be due to the reason, the market participants are just opting out of the exchanges and also dumping their respective native tokens. As per an on-chain platform Santiment, the biggest losers in the past 7 days include the native tokens of the popular exchanges.
FTT on FTX exchange, CRO on Cronos and HT on Huobi registered the biggest declines in the past seven days. This indicates a build-up of mistrust in the platform as crypto poetry may assume that the next fallout may be in line with BlockFi.
