One of many largest tales for the monetary markets in late 2022 is the collapse of the cryptocurrency platform FTX and the continuation of the crypto winter.
Right here’s a have a look at how a lot an funding in main cryptocurrency Bitcoin BTC/USD could be price now, based mostly on when FTX launched.
What Occurred: Main cryptocurrency platform FTX confronted liquidity points in late 2022 that finally led to the company declaring bankruptcy and the corporate’s co-founder Sam Bankman Fried being arrested in the Bahamas.
The liquidity points and chapter from FTX have put additional strain on main cryptocurrencies Bitcoin and Ethereum ETH/USD, with every down greater than 50% year-to-date in 2022. The FTX Token FTT/USD additionally collapsed in worth as a result of chapter.
Previous to the problems at FTX, the corporate was one of many three largest cryptocurrency platforms by buying and selling volumes and probably the most well known names within the house.
FTX was valued at $32 billion and Bankman-Fried, who co-founded the corporate with Gary Wang, was worth $16 billion. The corporate was spending aggressively on sports activities sponsorships and endorsement offers, all being performed as the corporate might have dedicated fraud and misused consumer funds.
The corporate formally launched operations on Could 8, 2019, and the whitepaper for the FTX Token in Could 2019 with a launch a number of months later.
Whereas the value of cryptocurrencies was down in 2022, anybody who adopted the FTX story from the beginning might have had higher luck.
Associated Hyperlink: Best FTX Alternatives: How To Keep Your Crypto Safe
Investing $1,000 in Bitcoin: When FTX formally launched operations, Bitcoin traded between $5,794.72 and $5,989.98.
A $1,000 funding in Bitcoin at its highest worth level on the day FTX launched may have purchased 0.1669 BTC.
The $1,000 funding in Bitcoin could be price $2,964.37 right now based mostly on a worth of $17,761.38 on the time of writing. This represents a acquire of 196.4% from the unique funding. The funding would have gained a median of 54.8% yearly over the past three years and 7 months.
On the peak worth of Bitcoin in November 2021, the $1,000 funding would have been price $11,480.99.
Take a look at Benzinga’s protection on all issues FTX and Sam Bankman-Fried here.
Picture: Rcc_Btn through Shutterstock
