Recent developments in the cryptocurrency sector reveal that the FTX exchange has launched a claims procedure aimed at repaying creditors, sparking a wave of astonishment across the market. Despite the arrest of former CEO Sam Bankman-Fried, the exchange has moved forward with this significant initiative. Investors have shown particular concern regarding the low valuations of cryptocurrencies set by FTX within this claims process.
Cryptocurrency Valuations Cause Investor Outrage
FTX’s exchange has provoked ire among investors by assigning drastically reduced valuations to major cryptocurrencies. Bitcoin, currently trading over $60,000, was valued at $16,871, and Ethereum (ETH), priced at around $3,500, was listed at a mere $1,258. Furthermore, Binance Coin (BNB) and Solana (SOL) were also priced well below their present market values, with SOL’s listed price at $16, despite its recovery to approximately $130.
The pricing strategy previously faced heavy criticism, leading to a period of silence before the current uproar. The recent price listings have reignited debates and speculation about the repercussions of FTX’s claims strategy.
Bitcoin’s Market Performance Amidst the Controversy
While Bitcoin’s price maintains its strength above $62,000, having touched $64,000, its trading volume has seen a 31% decrease to $31 billion. This suggests a shifting investor focus from Bitcoin to alternative cryptocurrencies, including meme coins like PEPE, FLOKI, SHIB, and DOGE, which have experienced substantial price surges.
Although Bitcoin’s market capitalization holds steady over $1.2 trillion, the asset’s trading volume drop indicates a potential redistribution of investments towards altcoins, particularly those with viral appeal.