8 November | Trades

Bitcoin and Ether decline in the background of FTX’s token sell-off

Leaders of the cryptomarket, Bitcoin and Ether, declined by 4% and 6%, correspondingly, in the background of the sell-off on the cryptocurrency exchange FTX.

Last week, CoinDesk reported that a significant part of the FTX’s balance consists of FTT and SOL tokens, which created a range of problems for it.

The market is increasingly concerned about the FTX liquidity. As a result, the exchange has experienced a massive outflow of stabelcoins. Over the past week, about $451 million was withdrawn from the main platform along with another $15 million from its subsidiary.

So far, the FTT token from FTX exchange has fallen by a total of 20%, hitting a record low of $17, previously recorded in February 2021. Last week, FTT was down by 13%.

Interest rates on FTX's margin lending platform, by contrast, have increased markedly. The exchange now pays a lending rate of 10% for USDT stablecoin instead of the previous 5% rate.

Investors' bearish sentiment may reflect their fears of another cryptocurrency collapse following Terra's recent crash.

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