The FTT sell offs on Binance have further exacerbated the problems for Indian crypto investors

• ByStartupStory     |    November 9, 2022

Digital assets crashed again after Binance announced it is selling off all its FTX Token (FTT) due to rumors that the third largest global crypto exchange, FTX, could be heading towards bankruptcy. This FTT came just as Indian crypto investors were beginning to get active again after signs of consolidation across the crypto ecosystem.

After that news, FTT dropped by more than 30 percent, and the rest of the market followed suit.

After briefly passing $1 trillion in late October, the market capitalization has fallen back below it. The catalyst for the event was a November 2 report by a crypto news website that highlighted the shaky financial position of Alameda Research, a hybrid investment fund and market maker for FTX. However, the market has remained tense due to the public spat between Changpeng Zhao, CEO of the largest crypto exchange by volume (Binance), and Sam Bankman-Fried, CEO of FTX. In a late Tuesday night announcement, Binance said it would acquire FTX, pending completion of due diligence. As of 05:30 UTC on Tuesday, the price of Bitcoin, the most popular digital currency, had dropped to $19,708, a decrease of 5.04% over the previous 24 hours as measured by the website Coinmarketcap. At the time of writing, Ethereum was trading at $ 1480 (-6.41 %), Solana at 28.12 (-11.07%), and Cardano at $ 0.384 (-6.45%). (-5.84). Shiba Inu, another popular meme coin, fell 8.70% to $.00001097, while Dogecoin dropped 13.04% to $0.101. Following the FTT Terra Luna fiasco a few months prior, Indian investors were understandably nervous as the meltdown played out. Because of falling FTT asset prices and a strict tax regime, the number of trades executed on Indian exchanges dropped precipitously during the nearly yearlong crypto winter.

According to Chahal Verma, an investor and social media influencer in Gurgaon, Bitcoin’s recent drop below the $20,000 mark was meant to serve as a reminder that a temporary price spike did not signal the end of the bear market. To paraphrase what she said, “Crypto is an extremely volatile asset class, and while fundamentals and technical indicators may change, investors need to focus on the same key rule, which is to stay alert and protected by learning when it’s time to sell, cut losses, or book profits, along with not getting excited by temporary moves.” Instead of acting hastily, we should wait and see what happens.

Expert cryptocurrency investors, however, are attempting to weather the crypto winter and market shocks by rebalancing their holdings and making strategic purchases.“I’ve got a firm grip on things right now. As promised, I have been putting my tokens to good use (staking, partaking in DeFi etc.). Selling me now would result in a loss. I’ve ceased adding to my token portfolio since April so I may avoid tax problems and instead simply switch them around when chances arise “Ashwin Nadar, a software developer at the age of 25, from Mumbai, made this claim. The positive fundamental changes happening in the ecosystem, such as Google Cloud accepting crypto payments, Elon Musk’s hints at turning Twitter into a Web3 project, and Hong Kong’s aspirations to become a global crypto hub by legalizing crypto trading, are said by experts to have caused an early consolidation in the crypto markets.

 After large price increases in cryptocurrencies like Ethereum, Binance, Matic, and Dogecoin, trading volume trend lines at major Indian exchanges like Coindcx, Coinswitch, and WazirX at Marketgecko have also begun to show signs of steady growth. Market confidence may take a hit in the short term due to the Binance-FTX spat, but experts predict it will recover in the long run. Koinbasket’s co-founder and CEO, Khaleelulla Baig, predicts that “in roughly 2 quarters from now,” cryptocurrency values will be trading in the black.The FTT sell offs on Binance have further exacerbated the problems for Indian crypto investors. Digital assets crashed again after Binance announced it is selling off all its FTX Token FTT due to rumors that the third largest global crypto exchange, FTX, could be heading towards bankruptcy. This came just as Indian crypto investors were beginning to get active again after signs of consolidation across the crypto ecosystem. After that news, FTT dropped by more than 30 percent, and the rest of the market followed suit, sending major currencies down.

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