moves to boost confidence as FTX collapses in market turmoil Business News

The boss of cryptocurrency exchange has slammed “naysayers” who questioned its finances as the market jolted after the collapse of rival exchange FTX.

Singapore-based CEO Kris Marszalek insists it has a solid balance sheet and no risk after investors took to Twitter over the weekend to question the move of $400 million in ether to another exchange.

He addressed speculation about the Oct. 21 transfer via a YouTube “Ask Me Anything” discussion, which, according to the Wall Street Journal, sparked a series of withdrawals that said the tokens had been recovered.

“At no point is there a risk of funds being sent somewhere they can’t be retrieved. This has nothing to do with any madness at FTX,” he told an audience of 7,000.

Mr. Marszalek started by assuring them that the foundation of the exchange was solid.

He promised to release audited proof of reserve reports within a few weeks, adding that is not involved in any “irresponsible lending products.”

Review the Spectacular Public crash or FTX Last week, Reuters reported that at least $1 billion in client funds had been lost, and Mr Marszalek said: “This sets the industry back several years in terms of the reputation we’ve built.

“Trust has been damaged, if not lost, and we need to focus on rebuilding it.”

He said that’s exposure to the FTX crash was around $10 million.

Big Ideas Live 2022
Big Ideas Live 2022

For more on science and technology, explore the future with Sky News at Big Ideas Live 2022.
Learn more and book tickets here is one of the top 10 exchanges by global trading volume, but below FTX and market leader Binance.

Earlier on Monday, bitcoin and ether were trading around 1 percent higher at $16,650 and $1,226, respectively.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said: “While the immediate storm following the collapse of major exchange FTX has subsided, the ensuing devastation is considerable, and cryptocurrency speculators have been hit hard by these recent losses. , will lick some painful wounds.

“It’s a painful reminder that within the larger financial system, the crypto wild west remains a fragile niche, with money betting on highly speculative assets.

“In an opaque world where fraud is rife, and while calls for stronger regulation will be heightened, the whole debacle is also a relief as regulators’ deep suspicions about the stability of cryptocurrencies have led to larger, More established financial institutions are immune to contagion.”

Source link