Crypto Prices Crash as FTX Crypto Exchange Collapses – What We Know So Far

cryptonews.com:

The price of almost all major cryptocurrencies crashed today after it was announced that major crypto exchange FTX will be acquired by rival Binance in a strange turn of events. 

The world's largest cryptocurrency has lost more than 8% in value over the past 24 hours, currently trading around the $18,000 mark. Ethereum, the second-largest crypto, also tumbled by more than 16% to $1,200. Polygon's Matic has suffered the most among the top ten, losing around 20% over the past day. 

Bitfinex market analysts said in a comment to Cryptonews.com that the recent developments in the crypto space would further exacerbate the sentiment around Bitcoin which was already in the crosshairs of whipsaw trading.

"In a space battered by a spate of high-profile failures this year markets are likely to remain turbulent until traders steady their nerves. A backdrop of looming rate hikes and a deteriorating global economy is only adding to super bearish sentiment,” the analysts said.

FTX earned itself a reputation as crypto’s bail-out king during the recent crypto meltdown. The platform generously offered to bail out some troubled digital currency platforms, offering millions of dollars in a revolving line of credit.

However, in a strange turn of events, the exchange become insolvent and had to sell its distressed assets to a competitor. “We have come to an agreement on a strategic transaction with Binance for FTX.com,” FTX CEO Sam Bankman-Fried said in a tweet. 

Binance CEO CZ added more details. “FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com,” he said. But how things reached there?

On November 2, CoinDesk reported that it has gained access to