BlockFi Declares Bankruptcy, Sues FTX Founder SBF! Why Analysts Say "Cryptocurrency is Dead"

BlockFi is not the only cryptocurrency company to be hit by the collapse of FTX. Japanese cryptocurrency exchange Liquid, which was hacked in 2021 and lost more than $90 million, also relied on a loan from FTX to stay in business and was subsequently acquired by FTX, but the platform suspended withdrawals on November 15 and has not resumed.

Cryptocurrency market value plummeted, FTX collapse no winners

From the collapse of Luna and TerraUSD to the fall of FTX, the cryptocurrency space may be facing an unprecedented crisis, with the total value of the cryptocurrency market having fallen to around $70 million, the lowest level since the beginning of 2021, especially since it was once as high as $3 trillion last November.

Even without a direct link, the downturn in the cryptocurrency market continues to spread, with news of the bankruptcy and closure of Hong Kong's AAX, which was named one of the world's top 20 most trusted exchanges yesterday (28), and vice president Ben Castlin's decision to close. Ben Castlin, vice president of AAX, said he was leaving the company, and AAX's Facebook and YouTube sites were shut down without warning.

Dan Dolev, senior analyst at Mizuho Americas, an investment bank, said that the company's Facebook and YouTube were shut down without warning. Dan Dolev, a senior analyst at Mizuho Americas, commented that with the collapse of FTX, cryptocurrency is now officially dead. He has previously been unimpressed with the development of cryptocurrencies, pointing out in an interview with CNBC that cryptocurrencies are not a productive asset.

Drefe believes that the disappearance of FTX will barely help its competitors, and Coinbase, the largest cryptocurrency exchange in the U.S., has also suffered from the crisis, losing nearly 90% of its market value compared to its 2021 high.