Why is the Cryptocurrency Market Falling? FTX crisis | Expert Analysis

 Bombolo | News and Media

Pic courtesy: Cover Art / Illustration Via Cryptoslate

The crypto market has dropped once again on Wednesday (9 Nov 2022) for the 3rd day as one of the largest crypto exchanges  (FTX Exchange) comes under scrutiny.

The primary reason behind the price drops appears to be due to the troubles hovering over FTX exchange and its native token (FTT) after it was revealed last week that the exchange's sister company Alameda Research holds large amounts of FTT tokens on its books.

Investors fear that FTX could go the way of the crypto lending service "Celsius" which went bankrupt in July and caused a meltdown in prices throughout the crypto-verse. However, many experts believe FTX's position is more secure than Celsius was at the time of market decline.

As per reports, FTX Exchange was set to be sold to Binance, which is one of the biggest and most popular crypto exchanges. However a day later Binance declared that the troubles FTX exchange is in, is beyong the capability of Binance to help and thus scraps the idea to buy the exchange. The Future of FTX Exchange is yet uncertain.