FTX: Europe faces the risk of a tsunami
What will be the next domino to fall? While the fall of FTX is doing a lot of damage in the United States, the European ecosystem is far from immune.
A real hangover.
For the past few days, the crypto ecosystem has been realising the scale of the FTX scandal and above all its consequences. For the American platform worked with hundreds of other companies in the sector, and its bankruptcy will drag others down with it.
Several American players are already in the red, and even some industry behemoths like Genesis have been singled out (more on that below). Such is the doubt that even Coinbase boss Brian Armstrong has had to deny any problems.
On Twitter, the American explained that his Wall Street-listed company held around 2 million bitcoins on behalf of its customers. This intervention was at least enough to calm things down in the short term 😅.
Meanwhile, the wave of the FTX tsunami continues its mad rush and has hit Europe.
One of the first to communicate on the subject is French company Coinhouse. The broker that bills itself as "Europe's leading crypto-bank" (540,000 customers) last week announced losses, notably on its "crypto passbooks" that used FTX products.
FTX was one of Coinhouse's counterparties on its passbooks (up to 5% on the bitcoin and USDT passbooks, 20% on the ether passbook). The French company covered the losses.
But as we revealed, the French broker was also subsequently forced to halt withdrawals, until further notice, from its "crypto passbooks" due to the "temporary suspension" of activities by another of its counterparties, the US company Genesis (the latter is seeking between $500 million and $1 billion in liquidity to continue operating).