BudBlockz returns reassure holders as Cronos and FTX Token falter
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Cryptocurrency enthusiasts are slowly coming to terms with the collapse of the FTX exchange and its native token, FTT. The collapse comes barely months after Terra Stablecoin also went under, raising serious doubts about cryptocurrency prospects. Cronos is another coin feeling the brunt of faltering sentiments on cryptos tied to exchanges. However, amid the fears, BudBlockz's performance over the past few days, and its long-term prospects, continue to reassure.
Once the second largest cryptocurrency exchange, FTX was forced to file for bankruptcy. The fallout came as its native token, FTT, lost more than 95% in market value amid liquidity concerns in the market. The collapse came amid talks that Alameda, a crypto hedge fund owned by Sam Bankman-Fried, held billions of FTT tokens and used them as collateral in further loans.
The collapse came amid lousy business practices as FTX allegedly loaned customer assets to Alameda for risky trades without customer consent. The fact that FTX also issued its cryptocurrency to Alameda as collateral went a long way toward triggering massive withdrawals amid criminal and regulatory probes.
The collapse of FTX and its native token, FTT, triggered massive declines, with Cronos being one of the coins to feel the brunt of the deep selloff. Investors are increasingly turning their back on tokens whose utility depends on their exposure to cryptocurrency exchanges, as was the case with FTT on the FTX exchange. Cronos, which powers the Crypto.com exchange, has not been spared either. Reports that Crypto.com sent more than 80% of its Ether holdings to another exchange called Gate.io, spooked
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