Residents say they face vacant apartments and the loss of job opportunities. They claim these losses resulted from the bankruptcy of the FTX exchange. Following the collapse of FTX, an entire country finds itself impacted.
A troubled economy
Following the collapse of cryptocurrency exchange FTX, which was headquartered in the island country of the Bahamas, Bahamians are reportedly still trying to find a way to make sense of it all, while remaining optimistic about the future. . According to a report by the Wall Street Journal (WSJ), the island country has been rocked by the FTX implosion. The country had encouraged cryptocurrency firms to feel at home with their tailored regulatory touch.
The Bahamas was hit hard by Hurricane Dorian in 2019 and the Covid pandemic in 2020. The country was already scrambling to find ways to bolster an economy overly dependent on tourism and offshore banking. These two activities constitute a large part of their gross domestic product. It appears that the current government of the Bahamas wanted to play a vital role in the economic recovery of the island.
The aftermath of the FTX implosion
Today, the community suggests that the sudden implosion of FTX has left a trail of unemployment on the small island. When operating at full capacity, the FTX company provided jobs for the local population. FTX spending over $100,000 a week on catering. Added to this is the establishment of a private shuttle service to transport workers to the island. According to the WSJ, FTX has also hired a number of Bahamians in areas such as logistics, event planning and regulatory compliance.
On October 18, Cointelegraph reported that the Bahamian securities regulator had ordered the transfer of FTX’s digital assets to a commission-owned wallet “for security purposes.” According to a statement from the Royal Bahamas Police sent to Reuters on Nov. 13, an investigation into possible criminal misconduct regarding FTX’s insolvency is underway by Bahamian financial investigators and securities regulators.
Indifference to the fate of the country
In the wake of FTX’s downfall, some in the crypto community have been clear. Some said they felt no sympathy for the effects of the collapse on the small island nation. For example, Hacker News user Matkoniecz commented along these lines. He explains that since the Bahamas helps wealthy individuals and businesses evade taxes, his sympathy for the negative consequences of this is limited. »
With the collapse of FTX, many spendthrift foreigners who worked for the company and boosted the local economy are said to have fled the island. Therefore, the situation turns out to be absurd. Bahamian security guards find themselves guarding nearly empty buildings.
Source : Cointelegraph
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