The FTX disaster, which took place a little over a week ago, has not finished reacting. While each project suspected of having an affair with Sam Bankman-Fried’s company tries to reassure, a crypto project has just dissociated itself from the platform. Via a press release, Algorand issued a statement to its clients on the situation of FTX. She says she is reassured and does not fear any domino effect of the crash of the exchange, since she has no commercial relationship with FTX.
Algorand Foundation reassures its community and plans an update on interactions with FTX
It is through a press release that Algorandthe Blockchain created by Silvio Micali in 2017, unveiled its opinion on the FTX status. Since the second exchange in terms of transaction volume went bankrupt, the company had not commented on this subject.
Inevitably, many investors and members of the community fear a possible domino effect. It could affect the entire crypto industry in general, and Algorand in particular.
It is precisely to calm the spirits that Algorand Foundation made this statement. You could read from the first sentences his support for the members of the community who would have been in one way or another impacted by the insolvency of FTX.
Algorand Foundation also wishes to warn users that it will proceed to an update on his interactions with the crypto exchange FTX. She goes on to specify that there is no commercial relationship with the exchange. Users can rest assured the crypto blockchain would have no dedicated custody with the company founded by Bankman Fried.
” We wanted to reach out to you, the community, to share an update on our interactions with FTX. The Algorand Foundation has never established a commercial or dedicated custodial relationship with FTX, Alameda Research or any affiliated company. We have never received investment from Sam Bankman-Fried, FTX or Alameda Research, we have never invested in them and we have never co-invested with them. “, this is essentially what we could read on the press release.
Algorand does not deny having an exhibition with FTX, except that it does not represent much. After a complete study of his secondary exposureit turns out that everything seems fine, there is also no concern on this side.
Conclusion
This release of Algorand Foundation was necessary for the community. It can still raise some questions. Especially since barely a month ago, Algorand listed USDCa on FTX to boost its adoption. Nevertheless, the company clarifies that this was only a small investment, as most of the USDCa would be held by other platforms like: MEXC, KuCoin, Huobi and OKX. We must now wait to see if this communication will be sufficient to calm a market still reeling from the FTX earthquake.
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