The bankruptcy of FTX and the implosion of the FTX token has triggered a severe crisis in the crypto market. Confidence in the crypto market and its institutions has been severely damaged in the past few days. Binance looks set to be the big winner as the largest crypto exchange looks to acquire one of its toughest competitors. But what about other crypto exchanges? Risky crypto exchanges might pop up anytime during these crises. In this article, take a look at the other biggest crypto exchanges and assess whether they might also crash.
What happened to FTX Crypto?
FTX was one of the largest crypto exchanges in the world. It competed with Coinbase for the second place behind the clear market leader Binance. For a long time, FTX was considered a very reliable platform that has developed excellently over time.
But in recent weeks, information surfaced about the bad financial standing. A leaked balance sheet has come to light showing the bad financials of FTX and its subsidiary Alameda Research. As a result, competitor Binance announced that it would liquidate all of its FTX tokens. Consequently, the FTX token price collapsed completely and FTX is now facing bankruptcy.
FTX Crash: Will other Crypto Exchanges follow?
When one of the largest crypto exchanges in the world suddenly becomes insolvent and when more and more strange practices by FTX and its CEO Sam Bankman-Fried come to light, it raises questions about crypto exchanges as a whole. Are there also holes in the balance sheets of other crypto exchanges? Which exchange can get into trouble in the future?
Which crypto exchange might Crash?
In the following, we want to deal with other crypto exchanges and see how the current situation of the most well-known exchanges is. Can a situation like FTX be repeated with certain providers or are there similar problems with other crypto exchanges? Who can determine the market in the future?
1.Binance
Binance was by far the market leader among crypto exchanges even before the implosion of FTX. By its decision to announce a liquidation of all its FTX tokens, Binance has heralded the end of FTX. Many observers accuse Binance of market manipulation.
In the following weeks and months, Binance now wants to buy FTX. This should massively underpin Binance’s position of power in the market. There are some dubious things surrounding Binance that you, as an interested observer of the crypto market, should look out for. You can find more information in this article .
2. Coinbase
In recent months, Coinbase has been in contention for the second spot in crypto exchanges with FTX and is Binance’s biggest competitor following FTX’s bankruptcy. There have already been rumors that Binance now also wants to damage and buy Coinbase. After the extent of FTX’s financial troubles came to light, these rumors quieted down a bit.
According to analysts, Coinbase shows a stable financial situation and cannot be compared with FTX and its machinations. When the dust from the FTX crash settles, Coinbase should have a fairly stable medium-term future. Its falling stock pries are directly correlated with the crypto market’s performance.
3. Crypto.com
Crypto.com, meanwhile, is under a little more scrutiny. In addition to Binance, Crypto.com has also announced that it will fully disclose finances. But a $260 million stablecoin transaction raises doubts.
In principle, there is no panic yet at the crypto exchange, which attracted attention in 2021 with an aggressive marketing campaign. CEO Kris Marszalek promised full transparency. The crypto exchange is said to have 1.2 billion CRO tokens (platform tokens) in reserve.
4. KRAKEN
After the deal with Binance fell through for the time being (which could still take place in the future), FTX asked Kraken , among others, for help. Kraken is one of the most established crypto exchanges in the market and there are currently no signs of a difficult financial situation or a hole in the balance sheet at Kraken.
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