Cryptocurrencies stabilize after FTX deal turmoil
Binance announced it was pulling out of the deal to purchase its rival following a review of FTX's balance sheet
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Bitcoin Foundation chairman Brock Pierce and Chamber of Digital Commerce founder Perianna Boring explain how Sam Bankman-Fried's FTX cryptocurrency exchange was unexpectedly hit with a mass liquidity crisis on 'The Claman Countdown.'
Cryptocurrency prices stabilized Thursday morning after a tumultuous couple of days sparked by news surrounding the collapse of a deal involving FTX Trading.
Crypto exchange Binance announced it was pulling out of a deal to purchase the failing rival.
The CEOs of the two exchanges, Sam Bankman-Freid of FTX and Changpeng Zhao of Binance had publicly agreed to a merger Tuesday, pending due diligence on FTX’s balance sheet.
Concerns were raised following the review convincing Binance to back out of the deal, Binance said in a statement.
In this photo illustration, the stock trading graph of FTX Token (FTT) seen on a smartphone screen. ((Photo by Rafael Henrique / SOPA Images/Sipa USA)No Use Germany. / Reuters Photos)
The turmoil sent cryptocurrencies reeling.
The price of bitcoin plunged more than 15% on Wednesday to $15,840, according to CoinDesk. The cryptocurrency fell for four straight days, dropping more than 26% during that time.
It had been above $20,000 earlier in the week.
Bitcoin was trading around $16,000 Thursday morning.
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Ethereum was trading around $1,200, after dropping more than 15% in the past week.
Dogecoin was trading around 8 cents, after losing 37% in the past week.
FTT, the smaller token tied to FTX, stemmed its slide after a week in which it plunged more than 92%.
Representations of cryptocurrencies are seen in this illustration. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)
Bankman-Fried told FTX employees he was exploring all options for his firm after the deal with Binance collapsed.
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FTX.com is also facing scrutiny from U.S. regulators over its handling of customer funds, as well as its crypto-lending activities.
Reuters contributed to this report.