The anomaly recently spotted in the finances of Alameda Research is making headlines in the cryptosphere. In effect, corner desk revealed last week that Sam Bankman-Fried’s trading firm was using FTX’s native token as collateral. The trading arm of the exchange therefore made loans based on FTT tokens. This revelation soon led many FTT holders to withdraw their holdings from the FTX exchange. As a result, the price of the token crashed dramatically, and the exchange is now in trouble. Some believe that this situation is a harbinger of the collapse of the crypto market.
Arthur Hayes predicts a dramatic collapse
According to a publication by Arthur Hayes, former CEO of BitMEX, on Twitter on November 8, the crypto market is going to crash. The exchange founder expects a collapse similar to what happened with the 2008 global financial crisis. FTX = Lehman. It wasn’t the bottom. The SPX reached 666 in March 2009. Therefore, $17,500 for BTC is a risk “.
So, for Arthur Hayes, the recent news about FTX will have a negative impact on Bitcoin. They could lead the flagship crypto to a value lower than $17,500. The founder of BitMEX told have bought“$15,000 put options on BTC »which expire in March 2023. He clearly expects the next collapse to do more victims in the crypto sector.
The former BitMEX CEO controversy
The former CEO of BitMEX refers to the anomaly at crypto firm Alameda Research, but he, too, is embroiled in controversy. It turns out that he admitted, in March, to having violated the bank secrecy law, with BitMEX.
Indeed, the two founders (Arthur Hayes and Benjamin Delo) of the exchange had voluntarily failed to put in place certain protocols aimed at combating money laundering.
Most cryptos fell following the collapse of the FTT token on Tuesday. For example, the price of bitcoin (BTC) recorded a drop of more than 15% in 24 hours. Similarly, Ether (ETH) has fallen more than 25% in the past 24 hours. Despite everything, there are new projects in the crypto sector, and this one seems not to have said its last word yet.
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