BENGALURU: After Sam Bankman-Fried’s FTX cryptocurrency exchange’s collapse, crypto investors are now worried about the uncertainty that is rocking the crypto ecosystem.
According to experts, at present, investor sentiment is very low in India, and confidence in exchanges seems to be waning.
On Monday, Bitcoin was trading below USD 16,000, and Ethereum was trading below USD 1,200. The two largest cryptocurrencies – Bitcoin and Ethereum- have seen an approximately 25 per cent decline over the past week.
Crypto exchange WazirX on Monday told its users they don’t risk customer assets and maintain a safe custody approach. It reiterated that the safety and protection of customer assets are of paramount importance to the exchange. “We would like to assure you WazirX is not affected.
The customer assets are appropriately segregated, accounted for, and held by the exchange in a custodial capacity, insulating the assets from such risks. Deposits, withdrawals, and trading are fully functioning, and it is business as usual for WazirX and its users,” it said.
The world’s largest crypto exchange Binance said it is forming an industry recovery fund to help projects that are otherwise strong but in a liquidity crisis. Before filing for bankruptcy, FTX was facing a significant liquidity crunch.
“Crypto is not going away. We are still here. Let’s rebuild,” Binance CEO Changpeng Zhao said. Crypto investing platform CoinSwitch said they don’t have exposure to FTX and its token FTT.
“We enabled Riskometer on Solana (SOL), a risk feature that warns on highly volatile coins or when the company feels users need to proceed with caution while investing in SOL, one of the tokens exposed to Sam Bankman-Fried and his firms Alameda Research and FTX,” Ashish Singhal, Co-founder and CEO, CoinSwitch said.