The Collapse of $22 barrier of FTT Led Crypto Maket Crash

Market fears are coming true as FTX Sam Bankman-Fried's barrier, which said it would defend the price of FTT at $ 22, has been collapsed.

The '$22 barrier' of FTT was collapsed from 11:35 a.m. on Nov. 8. FTT has been falling repeatedly, recording about $15 based on the Coinmarketcap at 2 p.m. It's down about 30 percent from $22 that Sam Bankman announced to defend.

On Nov. 7, Binance CEO Changpeng Zhao pointed out the financial solvency of FTT through his Twitter account and dropped a bombshell that Binance will sell all of the FTT of 2.1 billion dollars that Binance has possessed. The announcement from Changpeng Zhao caused the price drop of nearly 19% of FTT.

In this situation, Sam Bankman-Fried stated "There are $10 billion of assets that are not reflected in the balance sheet," adding, "If Binance sells the volume of FTT that they have, we will take over all of them and keep the price of $22 per FTT." In fact, as Sam Bankman-Fried said, the situation seemed to be over as FTT maintained its $22 price defense for nearly a day.

But at 11:35 a.m., the $22 barrier of FTT that Sam Bankman-Fried promised began to collapse.

FTT's fall in prices is not just FTT's fall in prices, but it is horrifying the crypto market.

This year, Sam Bankman-Fried made a very active investment through Alameda Research, and the fact that he presented FTT as a collateral asset in the investment and the circumstances in which FTT had a close relationship with this year's bankrupt DiFi platforms spread another fear of collapse in the market.

The market, which has already experienced the Celcius crisis, is terribly frightened. Most crypto are collapsing helplessly, falling nearly 15% within 3 hours. Doubts about the value of FTT are leading to be collapsing the market, affecting confidence in the entire crypto market beyond the collapse of confidence in the FTX exchange.

In particular, Solana, which has a close relationship with FTX, is also suffering severe damage, such as the suspension of deposits and withdrawals of Solana-affiliated tokens at Upbit, Korea's largest cryptocurrency exchange.

"Celcius also made aggressive loans and investments with Cell Token (CEL), but the value of Cell Token fell and the DiFi platform collapsed," a domestic cryptocurrency expert said. He added "The decline from FTT, which began with suspicion of FTT value, may hurt market trust as much as Celcius does."

권승원 기자 ksw@