This morning one of the world’s most popular cryptocurrency platforms, FTX, filed for chapter 11 bankruptcy, while CEO Sam Bankman-Fried resigns and net worth is practically nothing.
FTX released a press release announcing the breaking news.
Watcher.Guru, a crypto outpost, wrote: ‘The fall of FTX and Sam Bankman-Fried has been one of the biggest the crypto world has ever seen. Once a reliable name in the crypt trading market, there is no precedent to see how the entity could recover.’
Problems were reportedly already starting to begin boiling over to start this week, when it was revealed that the company was quietly tapping into people’s accounts and using their money to fund risky investments, coupled with failed acquisition deals leading to the problems FTX faces.
Bankman-Fried’s new worth has eroded from roughly $16 billion down to $0, per the Bloomberg Billionaire’s Index. Bloomberg is now valuing the company at a measly $1 a potential trading halt.
But what’s causing even more problems is the fact that FTX has now halted withdrawals from their system, freezing the transaction of billions of dollars worth of assets.
Watcher.Guru had this to say:
This halt of withdrawals arrives after the same practice had been executed by FTX earlier this week. Conversely, certain withdrawals started going through as days progressed, with today marking a suspension returning.
All that is present for FTX, and its customers, is uncertainty. The bankruptcy filings should be a sign of hope that users will be able to receive assets held by FTX. Yet, the company’s $10 billion hole could exceed its liabilities.
FTX has not commented, but its website warned on Thursday that trading could be halted. It assured customers, however, that withdrawals would not be affected. A promise that has proved to be untrue.
AUTHOR COMMENTARY
[4] Labour not to be rich: cease from thine own wisdom. [5] Wilt thou set thine eyes upon that which is not? for riches certainly make themselves wings; they fly away as an eagle toward heaven. Proverbs 23:4-5
This proverb has been exemplified and vindicated once again by this major news that has drastic implications on the cryptocurrency and digital asset industry in general. Just like the verses say, cryptos are something “that which is not:” in this case, you literally cannot even hold them in most cases, as it is all literally just digits on a screen – that took ACTUAL legal tender to invest in the first place, even if that that tender is printed on worthless paper!
Regulars of The WP know that I have said for some time that I think the crypto market is a highly volatile and uncertain space to be in; calling it a Ponzi-pyramid-pump & dump scheme, on a massive scale.
Now the company’s worth is less than that of a gumball, and people’s assets have been frozen as prices tumble – especially heading into the weekend – people are left holding the bag and losing their wallets. So many stories have popped up online in recent years about how they got suckered into a crypto scam and lost tens if not hundreds of thousands of their net worth.
So, for the obvious reasons presented here today, stay away from crypto…
He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.
Proverbs 11:15
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
no worries, crypto currencies are here to stay, the anti christ needs it for his one world currency that attaches to the mark of the beast.
Sharp observation, Cary.
Because one thing that’s going to happen during the Time Of Jacob’s Trouble is that all the economies are going to crash and all of the world’s currencies (dollars, pesos, euros, francs, yen, etc.,) are going to be worthless.
andy, I have studied eschatology for 25 years, so I know a lot about what is happening in this world. I have been saved for 30 years, and my mind is blown away with all the prophecy’s that have been fulfilled.