Crypto Exchange Tokens

[ad_1] Cryptocurrency prices steadied in a lull from the selloff sparked by the demise of Sam Bankman-Fried’s FTX empire. Cryptocurrency prices steadied in a lull from the selloff sparked by the demise of Sam Bankman-Fried's FTX empire, but investors are braced for more ructions as further digital-asset sector bankruptcies loom.The largest token Bitcoin added about 1.5% on Tuesday while remaining below $16,000 and in sight of the weakest levels since November 2020. Coins such as Ether, Solana and meme token Dogecoin also posted modest gains. The latest sign of contagion from the fall of the FTX exchange came from Genesis, a digital-asset brokerage that warned of possible bankruptcy unless it can raise cash. Crypto lender BlockFi Inc. is also struggling to stay afloat. FTX's unraveling...

[ad_1] The volatility of unbacked cryptoassets like exchange tokens makes them vulnerable to runs, exacerbating their price swings, Bank of England Deputy Governor Sir Jon Cunliffe said. Exchange-issued crypto tokens such as bankrupt FTX Group's FTT can pose “extreme” risks when accepted by their issuers as collateral, Bank of England Deputy Governor Sir Jon Cunliffe said.“A firm accepting its own unbacked cryptoasset as collateral for loans and margin payments, as there are indications may have happened with FTX, creates extreme ‘wrong-way' risk -- i.e. when the exposure to a counterparty increases together with the risk of the counterparty's default,” Cunliffe said in a speech on Monday. Cunliffe said the volatility of unbacked cryptoassets like exchange tokens makes them vulnerabl...

Tag: Crypto Exchange Tokens

Bitcoin’s Slide Pauses in Wait for Next Domino to Fall After FTX

Crypto Exchange Tokens Pose ‘Extreme’ Risk, BOE’s Cunliffe Says