Crypto stocks slip as FTX prepares for bankruptcy proceedings


Nov 11 (Reuters) – Shares of cryptocurrency and blockchain-related companies fell on Friday after FTX, one of the biggest crypto exchanges, announced it would file for bankruptcy proceedings in the United States. United, triggering a potentially massive collapse in the industry.

Silvergate Capital (FISHING) fell 10%, leading the sector’s losses, while bitcoin holder MicroStrategy Inc (MSTR.O) down 2.6%.

Riot Blockchain Cryptominers (RIOT.O) and Digital Marathon (MARA.O) fell about 5% each.

Bitcoin fell 3.6% to $16,919 as FTX chief executive Sam Bankman-Fried announced he would step down. Read more

“The shock was that this guy was the face of the crypto industry and it turns out the Emperor had no clothes on,” said Thomas Hayes, managing member of hedge fund Great Hill Capital LLC. At New York.

“And I think the real risk going forward is loss of confidence in an asset class.”

The announcement comes days after arch-rival Binance pulled out of a proposed acquisition of FTX, leaving the struggling company scrambling to raise around $9.4 billion after a torrid pace of withdrawals. customers earlier this week.

The turmoil at FTX, which rescued other players during the recent crypto market crash, has raised concerns about the future of the crypto industry.

Robinhood Markets (HOOD.O), which counts Bankman-Fried as an investor, edged up 3%. The online brokerage said on Thursday that it has no direct exposure to FTX. Read more

MicroStrategy and Silvergate tickers were trending on investor-focused social media platform, indicating an increase in chatter among retail pundits.

ProShares Bitcoin Strategy ETF (BITO.P) fell 8%, while the Short Bitcoin Strategy ETF (BITI.P) jumped 7.4%.

Reporting by Medha Singh and Bansari Mayur Kamdar in Bengaluru; Editing by Shinjini Ganguli

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