FTX’s token FTT has plunged, down some 70% from $25 a couple of days ago to barely holding $7 as of writing.
Its market cap has fallen by $2 billion in just two days, down now to $1 billion in one of the more spectacular crashes in crypto.
That follows FTX’s decision to freeze withdrawals after Binance announced intent to acquire the exchange that has seen a mass exodus.
All other cryptos have fallen too. Bitcoin is down more than 10%. Solana has lost 25%. This may even be spreading to stocks which were green for much of the day, but Nasdaq is edging on red, up only 0.05%.
FTX had/has complex relations with many companies, including GME with which they partnered for an NFT marketplace.
The WallStreetBets crowd has therefore been paying attention. This may therefore affect sentiment in stocks.