What are the consequences after FTX bankruptcy?

[Marvell1]

The collapse of a big fish like FTX will lead to hundreds of other bankruptcies, the long-running TV series about FTX is just the beginning. Luna's death alone led to many crashes like 3AC, Celsius Network... and blew away 60 billion market capitalization. FTX is something much bigger, I have a feeling that the storm has just begun and we are not yet the center of the storm, the crash of FTX will be bigger than what Luna or Mt.gox ever caused.
In just 3 days, information related to the collapse of FTX caused the market to evaporate 150 billion and I believe this number will increase when they are officially declared bankrupt under Chapter 11.

The empire of FTX and the companies they associate with and invest in.


https://docs.google.com/spreadsheets/d/159Qjz1F9uyElsr8oIdNzCz-R_4dCAQgPbpvzR24AHbw/edit#gid=0



134 companies filed for bankruptcy with FTX
https://twitter.com/Blockworks_/status/1591086026327326720?fbclid=IwAR3w3Ah5zNKZuRkxaXq0__Lofv2OvfODUqcds96QFIKtZH9j4LhFHLqKdvI

[hugeblack]

Are these companies really influential or independent financial entities? Personally, I did not hear most of them and did not hear a real development presented by that platform, and therefore the most precious of these companies is directly or indirectly affiliated with FTX, and it is not affected by FTX bankruptcy.

We have to expect that the only one has happened or close to the occurrence, and we hope that the situation is not that bad, otherwise the damage will be greater.

[michellee]

The crypto market may have a downturn like the ones we've had before. But that won't make the crypto market lose its strength to rise because these times will end and when people decide to exit the market, they will lose the moment to stay afloat and finally be able to get profitable again.

Let it all reveal itself because this is like a purge from the crypto market of projects that are not good and just want to scam people who invest in crypto. We should wait for what will happen in the market and in the meantime, we can return to investing in bitcoin only, which will provide benefits in the future, rather than investing in altcoins that are trying to survive.

[YOSHIE]

The collapse of a big fish like FTX will lead to hundreds of other bankruptcies,

Of course, the collapse of FTX will cause long-term consequences and concerns for other crypto companies and investors, many view and at the same time feel distrust that FTX is a company that is relatively safe but can cause destruction, this will be vulnerable and have a negative effect on crypto assets in other companies.

In addition to the statement of the CEO of Binance, who said.

Binance announced it will be selling FTX tokens, FTT in $529 million increments. Binance's decision is clearly making the crypto market boisterous and questioning what is going on.

This statement will lead to potential and ongoing negative issues, which could occur for the bankruptcy that occurs against FTX and Alameda, in general the effect that occurs on FTX will affect and have bad pressure for other exchanges, like CoinDesk, Coinbase and others, as they are also one of the highest volume trading FTX tokens.

[jrrsparkles]

This statement will lead to potential and ongoing negative issues, which could occur for the bankruptcy that occurs against FTX and Alameda, in general the effect that occurs on FTX will affect and have bad pressure for other exchanges, like CoinDesk, Coinbase and others, as they are also one of the highest volume trading FTX tokens.

Already few exchanges send email to the users about security of their funds cause they are trying to stop the users from panicking and withdraw everything in all other exchange wallet will surely affect other exchanges. Apart from exchange we can witness the dump in the cryptocurrency prices which may increase further but this isn't going to be the end of cryptocurrencies just another big lesson for all the users.

[dkbit98]

The empire of FTX and the companies they associate with and invest in.

OMG... list is much bigger than I thought  
There is so much shitcoin vaporware and crapware connected with FTX, and I am just waiting for the next big collapse to happen, maybe it's time for Solana to finally die, after stopping centralized blockchain numerous times.
It's not bad to see clean up and purging off some fake dex projects I see listed here, and maybe few more centralized exchanges will stop working soon.
Real danger I see is that few more stable coins are probably going to collapse and we can see bitcoin going down again as a result.
Better be ready for a bumpy ride in next few weeks and months.

[The Sceptical Chymist]

maybe it's time for Solana to finally die, after stopping centralized blockchain numerous times.

I don't know a hell of a lot about that coin, but given that it's not tied to an exchange like BNB or FTX's coin I doubt it's going to just implode and go to zero.  Obviously there are plenty of people who've got no problem buying coins like that, just as there are too many people willing to keep their funds on centralized exchanges, out of sheer ignorance or because they accept the risks involved in doing so.

Real danger I see is that few more stable coins are probably going to collapse and we can see bitcoin going down again as a result.
Better be ready for a bumpy ride in next few weeks and months.

Again?  I'm not sure if bitcoin has stopped going down (though it seems to have paused for a breather).  And those stablecoins, man....I don't really understand what function they serve except as a place-marker for cash on exchanges or why there are so many of them.  Frankly I don't give two shits what happens to them, and the more attention the government pays to them and not bitcoin, the better.

Are these companies really influential or independent financial entities? Personally, I did not hear most of them and did not hear a real development presented by that platform, and therefore the most precious of these companies is directly or indirectly affiliated with FTX, and it is not affected by FTX bankruptcy.

Yeah, I don't know any of that either.  As I said in another thread, I hadn't even heard of FTX until this whole thing went down (though I might have heard their name here and there).  Regardless, this debacle did have a big effect on bitcoin that can't be denied, and I'm hoping people aren't losing faith in crypto in general and bitcoin particularly.

[rat03gopoh]

The list is too long, some of them will follow the destruction.
Consequences in the long term? positive course. FTX has invested in most of the unnatural value growth schemes (just the money cycle), imagine if they collapse in the near future. Without reducing sympathy for those who lost, at least this big incident encouraged people to learn to be true crypto users, making blockchain work again.

[albon]

134 companies filed for bankruptcy with FTX
https://twitter.com/Blockworks_/status/1591086026327326720?fbclid=IwAR3w3Ah5zNKZuRkxaXq0__Lofv2OvfODUqcds96QFIKtZH9j4LhFHLqKdvI

What bad news, 134 This is a large number of companies that will follow FTX into bankruptcy, I see that this in turn will affect the cryptocurrency market and the downtrend will continue for years until it recovers again, as in the last 24 hours the cryptocurrency market is down by 2.6% in addition to the overwhelming category Of the investors and traders who lost their full confidence in the central exchange platforms in general, and as a result of this crisis, the wealth of the founder of FTX evaporated to reach about one billion dollars in one day, and in my opinion, what aggravated this crisis was the pulling out of the Binance platform from the deal to acquire the FTX platform.

[Marvell1]

The empire of FTX and the companies they associate with and invest in.

OMG... list is much bigger than I thought  
There is so much shitcoin vaporware and crapware connected with FTX, and I am just waiting for the next big collapse to happen, maybe it's time for Solana to finally die, after stopping centralized blockchain numerous times.
It's not bad to see clean up and purging off some fake dex projects I see listed here, and maybe few more centralized exchanges will stop working soon.
Real danger I see is that few more stable coins are probably going to collapse and we can see bitcoin going down again as a result.
Better be ready for a bumpy ride in next few weeks and months.

FTX and alameda greatly contribute to Sol's success in 2021, the collapse of FTX will adversely affect Sol but whether Sol will die or continue to develop is decided by Sol, not FTX. The total number of Sol tokens purchased by FTX is 58 million and will be allocated from September 2021 to 2027 and will be unlocked monthly.

Recently, lending platform BlockFi, after blocking withdrawals last week, is said to be preparing to file for bankruptcy as it relates to FTX and Genesis, a crypto brokerage firm that also just announced suspended withdrawals.
https://www.bnnbloomberg.ca/crypto-brokerage-genesis-suspends-withdrawals-at-lending-arm-1.1847224

Below is a list of companies that suffered significant losses after the collapse of FTX and I also believe the consequences will be more severe than what we see now.

[m2017]

The effects of the FTX exchange crash will reverberate throughout the crypto currency industry for a long time to come. There is an opinion that this event can cause a chain reaction and create trouble for other projects and platforms. Perhaps in the near future we will already learn about them. But to be honest, I think it's good that this problem is exposed and it will allow the industry to clean up. Undoubtedly, this will cause pain and suffering, but recovery without this is impossible and the medicament can't be sweet. In the short term, the collapse of FTX is very bad, in the long run it can turn out to be good. Let's see where it leads, but I'm sure it will change the entire industry in a big way.

[bbc.reporter]

@m2017. The other problem caused by this collapse would be more aggression on how to regulate the cryptospace through more strict laws and regulations and more aggressive enforcement. The banks and other payment processors would also be strict in blocking transactions to and from exchanges.

However, what might be good from this is it might delay the government from creating and enacting new regulations. In America, there are some people who think that Sam Bankrupt-Fried was very close in putting the freedom in Defi in a coffin through his advice and his meetings in Washington DC.

[Marvell1]

The effects of the FTX exchange crash will reverberate throughout the crypto currency industry for a long time to come. There is an opinion that this event can cause a chain reaction and create trouble for other projects and platforms. Perhaps in the near future we will already learn about them. But to be honest, I think it's good that this problem is exposed and it will allow the industry to clean up. Undoubtedly, this will cause pain and suffering, but recovery without this is impossible and the medicament can't be sweet. In the short term, the collapse of FTX is very bad, in the long run it can turn out to be good. Let's see where it leads, but I'm sure it will change the entire industry in a big way.

I support your point, the death of FTX will cause more pain for the market in the near future but that is a good thing because if not now and FTX soon becomes as big as binance and then the FTX bubble burst will deal more damage now.

These will be stains that adversely affect the reputation of crypto, but if you compare crypto with stock or forex, we are still very young and very vulnerable is inevitable. To become bigger and bigger, it is impossible not to make trade-offs and experience many tragic losses. There is no success without cost, sometimes in blood.

[estenity]

@m2017. The other problem caused by this collapse would be more aggression on how to regulate the cryptospace through more strict laws and regulations and more aggressive enforcement. The banks and other payment processors would also be strict in blocking transactions to and from exchanges.

However, what might be good from this is it might delay the government from creating and enacting new regulations. In America, there are some people who think that Sam Bankrupt-Fried was very close in putting the freedom in Defi in a coffin through his advice and his meetings in Washington DC.

Bix Weir says that LedgerX.com (CFTC approved derivatives since july 2,017) was FTX derivative arm, hence this should be investigated for regulatory action and result..

anybody to confirm that?

[Marvell1]

@m2017. The other problem caused by this collapse would be more aggression on how to regulate the cryptospace through more strict laws and regulations and more aggressive enforcement. The banks and other payment processors would also be strict in blocking transactions to and from exchanges.

However, what might be good from this is it might delay the government from creating and enacting new regulations. In America, there are some people who think that Sam Bankrupt-Fried was very close in putting the freedom in Defi in a coffin through his advice and his meetings in Washington DC.

Bix Weir says that LedgerX.com (CFTC approved derivatives since july 2,017) was FTX derivative arm, hence this should be investigated for regulatory action and result..

anybody to confirm that?

There was some confusion here and I figured this out. LedgerX.com is a leveraged company of FTX US and Ledger is a cold wallet company we all know as Ledger Nano X. Both are two completely different companies.
https://ledgerx.com/
https://www.ledger.com/

[Darker45]

There are many actual and possible consequences following FTX's collapse. Here are some right off the bat:

• Other crypto companies could also collapse. Voyager, BlockFi, Genesis are some of these. If they won't completely crash, they will certainly be facing a very difficult crisis.
• So many clients not just of FTX and its arms but also of other companies affected by their bankruptcy will have their funds stuck for a very long time or, worse, lost for good.
• There will be a serious revisit of existing crypto regulations which will result into various amendments and additions and possibly stricter approaches.
• Financial transparency and status among centralized platforms is becoming a must.
• The prices of cryptocurrencies falling, thereby further delaying their recovery.
• Some crypto users possibly abandoning exchanges and other centralized platforms.
• Trust, confidence, and perception levels of crypto going low.  

[bbc.reporter]

@everyone. There is another consequence after the bankruptcy of FTX. Leaked secrets and our eyes will not be spared from the horror of these images that will cause in our lives. Once you see them, you cannot unsee them hehehe. There is a rumor that there is a sex tape of Sam and Caroline that will be released soon. Have your snacks and drinks ready.

This is one of those leaks being shared in social media. I am not quite certain if this is real, however.

[estenity]

@m2017. The other problem caused by this collapse would be more aggression on how to regulate the cryptospace through more strict laws and regulations and more aggressive enforcement. The banks and other payment processors would also be strict in blocking transactions to and from exchanges.

However, what might be good from this is it might delay the government from creating and enacting new regulations. In America, there are some people who think that Sam Bankrupt-Fried was very close in putting the freedom in Defi in a coffin through his advice and his meetings in Washington DC.

Bix Weir says that LedgerX.com (CFTC approved derivatives since july 2,017) was FTX derivative arm, hence this should be investigated for regulatory action and result..

anybody to confirm that?

There was some confusion here and I figured this out. LedgerX.com is a leveraged company of FTX US and Ledger is a cold wallet company we all know as Ledger Nano X. Both are two completely different companies.
https://ledgerx.com/
https://www.ledger.com/

OK, i know that.
I was speaking of ledgerx.com, which in this case is a dependancy of FTX (FTX derivative exchange)
also this thread is about FTX collapse mainly, so no confusion at all.

[NotATether]

I have a solution.

Burn the businesses all up!

The less zombie businesses that are infecting the cryptosphere we've all come united to defend, the better it will be for us all, as well as for newbies who would've otherwise got scammed by them all (or worse [cf. Celsius data leak]) once they failed.

[bbc.reporter]

I have a solution.

Burn the businesses all up!

The less zombie businesses that are infecting the cryptosphere we've all come united to defend, the better it will be for us all, as well as for newbies who would've otherwise got scammed by them all (or worse [cf. Celsius data leak]) once they failed.

I am not certain if I could agree with burning all centralized businesses in the cryptospace because that would imply killing the cryptospace and cause bitcoin and altcoins to be more of a speculative investment than it is presently.

I reckon what we should be doing is to be more supportive of decentralized protocols that encourage self custody, that never bow to regulators and that also encourage to account for our investments not in fiat but in cryptocoin value.