Small Investors Who Entered Cryptocurrency Now See How They Can’t Recover Their Savings Due to the System’s Illiquidity
Yet another chapter of chaos in the cryptocurrency market following several episodes of bankruptcy, illiquidity and uncertainty for investors entering these assets, lured by their seemingly easy profitability. The trading platform (“exchange”) of cryptocurrencies and other cryptographic assets (NFT) Binance has reversed its intention to acquire FTX, which is in financial difficulty, after analyzing its accounts and in light of possible investigations by the US authorities, putting his rival on the brink of collapse.
“As a result of corporate investigation, as well as recent news reports of mishandling of client funds and alleged investigations by US agencies, we have decided that we will not pursue the potential acquisition of FTX.com,” Binance confirmed for just a day. after announcing an agreement to purchase the platform. In a short message via his Twitter profile, Binance CEO Changpeng Zhao regretted the failure of the transaction. “It’s a sad day. We tried, but…».
In this regard, Binance explained that while it was initially hopeful that it could help FTX customers provide liquidity, it has finally acknowledged that the issues are beyond its control or ability to help. “Every time a major player in an industry fails, retail consumers will suffer,” lamented the platform, which however believes the crypto ecosystem is becoming more resilient. “As regulatory frameworks evolve and the industry continues to move towards greater decentralization, the ecosystem will grow stronger,” he emphasized.
Last Tuesday, the largest “crypto” trading platform announced its intention to come to the rescue of FTX with liquidity problems on the platform, although Changpeng Zhao warned at the time that the operation had yet to go through the preliminary investigation process. Binance can pull out of the deal at any time.
The problem is old. So much so that as early as 2018, the stock markets regulator and the financial sector regulator anticipated any conflicts that could affect citizens from the use of virtual currencies such as ‘bitcoin’, the world’s main virtual currency. . The National Securities Market Commission (CNMV) and the Bank of Spain have issued a joint statement warning that this type of investment “cannot benefit from the guarantees or protections provided” in current regulations.
Since then, the calls for attention and warnings from the Bank of Spain and the CNMV have been constant, especially after each chapter in which a new cryptocurrency company announced a lack of liquidity or the inability to repay the invested funds, especially on the part of individuals.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
