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FTX Files Bankruptcy: Crypto

Concerns for Crypto: FTX Files for Bankruptcy

Last Friday, the crypto company, FTX, filed for bankruptcy. Evidently, the business was investigating what they called “unauthorized transactions”. Last month, we reported about the vast amounts of layoffs many cryptocurrency companies ignited. Their founder and Chief Executive, Sam Bankman-Fried, has announced his resignation.

FTX has begun transferring their remaining income to a more secure storage avenue prior to the one they had been using. According to the New York Times, “But the full impact of FTX’s dramatic collapse is only beginning to take shape. In his relatively short time as a multibillionaire, Mr. Bankman-Fried built up an astonishingly broad business empire, with investments in dozens of smaller crypto firms and partnerships with businesses as varied as Anthony Scaramucci’s investment firm SkyBridge Capital and the N.B.A.’s Miami Heat. He also became an influential Democratic Party donor, promising to spend as much as $1 billion during the 2024 election cycle.”

An Uncertain Future for Crypto

In the past, cryptocurrency companies were seen as invincible to the inflation and setbacks that centralized banks experienced. But now, that’s no longer the case. These crypto firms and startups are now just as susceptible to inflation and stock fluctuation as the brick-and-mortar banks of yesterday experienced. Experts say this is because, unlike when crypto companies started, they are now tied to the market as a whole. As a result, the most susceptible companies will be those firms that created their own cryptocurrencies. Other experts have long warned that the crypto boom would not last and that the boom experienced over the past two years wouldn’t last forever.

And, in case you missed it, take a look at APC’s article on how banks are steadily losing their workforce to fintech startups despite the crash of crypto. You can also stay up-to-date on relevant news to the technology industry through the APC Blog. We feature articles that spotlight thought-leadership topics that provide a range of information on tips for Hiring Managers and professionals and top technology news.

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