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The most topic at the moment talked about the cryptocurrency world is the declaration of bankruptcy of FTX, one of the largest cryptocurrency companies in the world, and the effect that this could have on the market.
FTX made the request under Chapter 11 of the United States Bankruptcy Act seeking legal protection. Meanwhile, it finds a way to return some of the billions of dollars lost by its customers.
Sam Bankman-Fried, founder and managing director of FTX, has apologized for his company’s difficult financial situation and will step down. He will be replaced by an experienced bankruptcy attorney.
Why did this happen?
And why did FTX fall? After rumors that the company lacked sufficient liquidity, customers began frantically withdrawing hundreds of millions of dollars in fear of losing their funds.
The importance of FTX to the industry is so great that investment bank JPMorgan Chase has warned that cryptocurrency markets could face a ripple effect of crashes.
Experts are concerned about what could happen in this market, especially as the cryptocurrency world is experiencing a “crypto winter”, i.e. a sustained stage of low prices.
What can we expect?
What is left for us to do in the midst of the FTX bankruptcy? Our recommendation is that you keep a cool head and be open to learning and thinking for yourself in the face of the situation.
That’s why we’re sharing our insights into the event, and we hope this helps you.
We know that this event will affect the cryptocurrency market, after all it is not a good sign when the most important company in a market files for bankruptcy, no matter if it is the retail or cryptocurrency market.
However, we need to go beyond what is being presented as information. Could it be that the real reason for the bankruptcy of FTX was bad business and management decisions or is the cryptocurrency market really in a dead end?
It is something to consider, because the market in which a company is inserted is just one of the variables that it needs to manage to be successful. This includes making good strategic, product and especially resource management choices.
What can we learn from this?
In addition, we regret the event, but we also need to learn from other people’s mistakes to avoid a similar future. What can we learn from all this? What is a lesson for you?
Even though it is a recent event, some companies are already acting on it and creating new business opportunities aimed at improving and stabilizing the market.
We know that those who invest in variable income, as is the case with cryptocurrencies, must learn to hold back anxiety in these periods to make better investment decisions and protect the acquired assets.
Therefore, decisions triggered exclusively by news are mostly considered bad.
What to do to stay in the cryptocurrency market?
Avoid contaminating yourself with the negativity propaganda by the media about the market and go study new projects, new investment possibilities and especially who is profiting in the market.
This can open your mind a little about the possibilities of the market and with a little luck make good investments.
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