A crisis of confidence
FTX filed for bankruptcy last Friday. Now what?
FTX’s $32B valuation is now worth nothing. The company lost between $1B and $2B of customer funds and the total crypto market cap is down 20% from early November.
The exchange’s demise will have reverberating effects on hundreds of blockchain and crypto companies. For example, the nearly 200 portfolio companies backed by FTX Ventures, FTX, FTX.US, and Alameda Research may have to sell their equity at a discount.
FTX Ventures was the second-most active blockchain investor in Q3, and we tracked its investments this year in a recent report (published before the collapse).
See more: LatAm cryptocurrency investment platform Arch raises $5 million
When asked about the state of the crypto industry, Binance’s CEO Changpeng Zhao (CZ) said that “consumer confidence is shaken” and that the industry as a whole has been set back a few years.
But there are so many areas in blockchain and crypto that still deserve our confidence. We’ll continue to cover those in this newsletter, with the data to back it up of course.
Read on to hear about the state of enterprise blockchain how blockchain is transforming trade finance.
Source: CB Insights
