FTX Searches Funding To Keep Operating, Can Kraken Help?

FTX continues to desperately search for additional funding in order to keep afloat. As Binance decided not to purchase the crypto exchange, Kraken could be a second option. In a recent report released by Reuters, FTC has approached Kraken, a prominent crypto trading platform in the market, to rescue FTX. 

FTX Could Get Additional Funding From Kraken

The current issues faced by FTX continue as it seems to have approached Kraken in order to continue with its operations. The CEO of FTX, Sam Bankman-Fried said that they were talking with different players in the space. One of the persons that have also been contacted according to Reuters was Justin Sun, the founder of Tron, one of the largest blockchain networks.

Justin Sun wrote on Twitter that he really appreciates the collaborative work between different FTX teams. On that matter, he said:

“TRX trading on FTX has resumed. We are working on a withdrawal function. Stay tuned. This is only the initial step taken towards a wholistic solution that is being crafted to resuscitate and return to normalcy for all FTX users. I greatly appreciate the collaborative work between FTX teams.”

https://twitter.com/justinsuntron/status/1590586174313488384

Earlier this week, FTT started to move lower as rumours spread about a possible insolvent Alameda. Then, Binance announced that they were going to start selling their FTT holdings, and this is when everything got worse. The market dropped and FTT fell to $2 per coin a few hours ago. It is worth pointing out that FTT was traded above $20 on Monday. 

This has triggered one of the largest sell-offs in the history of the cryptocurrency market. Bitcoin and other digital currencies fell to multi-year lows. Today, for example, is the one-year anniversary of which Bitcoin reached an all-time high of $69,000 per coin. At the time of writing this article, Bitcoin is being traded at $17,400, but it was traded yesterday below $16,000. 

After what happened, Tether (USDT) lost the parity against the USD being traded at a 1% discount (which reached a 5% discount in some exchanges). This happened due to the lack of trust that there is right now in the crypto industry towards large companies, including exchanges. 

The question is now to understand for how long the market will stay at current levels and what should happen for it to recover. Many analysts believe that we are reaching a bottom and that it might be necessary to take some years before Bitcoin and other digital assets will be able to recover. 

According to data shared by CoinGecko, Ethereum (ETH) is being traded at $1,270, Binance Coin (BNB) has a price of $30, XRP is being traded at $0.38, Cardano (ADA) has reached $0.36 per coin, and Dogecoin (DOGE) has already broken below $0.10. 

In the last 24 hours, Polygon (MATIC), Maker (MKR), and Solana (SOL) have been among the best-performing digital currencies in the market with price increases of 33.2%, 28.8% and 22.2%, respectively. 

Jonathan Gibson

Jonathan Gibson