FTX Collapse leads to over 80,000 Bitcoin streaming from exchanges

The collapse of FTX has severely damaged investor confidence in centralized cryptocurrency exchanges. Amid the ensuing financial turmoil and reports of troubled cryptocurrency exchanges taking advantage of client funds to fund risky projects, the golden rule of cryptocurrencies – “not your keys, not your coins” has once again taken center stage in popular discourse.

  • Giving up control of users’ currencies has cost a lot. As a result, mass withdrawals from exchanges have now been reported.
  • According to CryptoQuant, over 80,000 BTC has left exchange wallets in the past 24 hours. The data showed that investors are withdrawing their bitcoins to store them elsewhere than the exchange.

The report stated:

“The past few days have been absolute chaos for the crypto industry. FTX goes bankrupt, looks for a bailout, and Binance may jump in to help. Time will tell if it becomes a reality. Meanwhile, investors have lost faith in centralized exchanges. This is perfectly depicted in the Exchange Reserves & Exchange Netflow”.

  • On-chain data also suggested that more than 5 billion stablecoins of exchange outflows were tracked by CryptoQuant. The numbers appear to be the largest since June 15th as the volatility caused by the FTX drama continues to escalate.
  • On the other hand, the number of transactions withdrawing stablecoins from exchanges rose to over 57,900 from 7,016 just a week ago.
  • Due to the massive influx of cryptocurrency exchanges, the hardware-based cryptocurrency wallet provider is Ledger test Few scalability challenges after server outage.

After FTX Collapse Triggers Over 80,000 Bitcoin Outflow from Exchanges debuted on CryptoPotato.

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