Crypto Market Falls Below $1 Trillion Amidst FTX Token’s Plunge
Cryptocurrencies dropped close to 5 percent overnight amidst a whopping 25 percent fall in the price of the FTX Token (FTT), the crypto token of the FTX cryptocurrency exchange. Overall crypto market capitalization dropped to $979 billion, versus $1.03 trillion a day earlier, amidst growing fears concerning the FTX crypto exchange. Only one of the top 100 cryptocurrencies is currently trading in solid green territory.
Recent revelations and rumors pertaining to Alameda Research, a sister concern of FTX and rival Binance’s announcement of its decision to offload the FTX Tokens have caused considerable chaos and a bearish sentiment in the overall crypto market. Market mood remains soured amidst fears over whether the spat between the two crypto big shots would engulf the entire cryptocurrency spectrum.
FTT, the native token of the pressured FTX exchange has fallen to $16.63. FTT which had touched a high of $23.15 in the past 24 hours, dropped to as low as $15.56. It has lost 35 percent in the past week and 45 percent in the past 90 days amidst reports that the exchange appears to have stopped processing withdrawals.
Also falling big are meme cryptos, plunging more than 11 percent overnight to a market cap of $19.9 billion. 8th ranked Dogecoin (DOGE) dropped 12.9 percent whereas 14th ranked Shiba Inu (SHIB) declined 8.7 percent.
Market capitalization of Decentralized Exchanges category dropped 8.6 percent amidst losses exceeding 10 percent in 17th ranked Uniswap (UNI) and 61st ranked Synthetix (SNX).
NFT & Collectibles as well as Metaverse categories also recorded declines of more than 6 percent in the past 24 hours.
Smart Contracts category declined 5.8 percent overnight whereas DeFi category shed 5.4 percent in the same period.
The Centralized Exchange category, however, has shed only less than 3 percent despite the massive losses in FTT, ranked 4th in the category.
Market leader Bitcoin is currently trading at $19,631.94, down 5.3 percent on an overnight basis.
Ethereum is currently trading at $1,471.54, down 6.8 percent on an overnight basis.
In another significant development for the crypto industry as a whole, the US SEC has won the lawsuit against crypto firm LBRY. The SEC has in a litigation release announced that on November 7, 2022, a Judge of the United States District Court for the District of New Hampshire granted the SEC’s motion for summary judgment against LBRY, Inc. LBRY, a New Hampshire software company had issued crypto asset securities called “LBRY Credits” or “LBC.”
The Court held that LBRY offered and sold LBC as a security in violation of the registration provisions of the federal securities laws, and that LBRY did not have a defense that it lacked fair notice of the application of those laws to its offer and sale. The development assumes significance in view of the prolonged legal dispute between the SEC and Ripple Labs.
The latest developments have come as a crude shock to the crypto markets already reeling under severe macroeconomic headwinds, particularly persistent inflation. Lingering concerns over the hawkish stance by central banks continue amidst consensus estimates that point to a headline inflation reading of 8 percent and a core inflation reading of 6.5 percent in the month of October. The data is due for release on Thursday.
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