Despite the premonitions of a long crypto winter and the consequences of the FTX collapse, financiers believe that in the future, cryptography and blockchain will be increasingly used to trade financial assets. The Morgan Stanley report showed that the industry expects further bankruptcies and deleveraging, according to CoinDesk. The results of the discussion of the industry's problems at the bank's event "Cryptocurrency vs Traditional Finance" suggest that after the collapse of FTX and Alameda Research, "the market is revaluing the value of all issued tokens of the project" and is trying to figure out "whether they were used as assets to provide leverage" .
The collapse of the FTX cryptocurrency exchange will be one of the darkest moments in the history of cryptocurrencies. In November, the company faced severe liquidity issues and was unable to meet its customers' withdrawal requests. The following are some of the companies that were affected by the collapse of FTX.
The consequences of the collapse of FTX are ubiquitous. Liquid Global, a Japanese crypto platform owned by FTX, stopped withdrawing funds shortly after its parent company filed for bankruptcy. The former fell victim to hackers last year and lost over $90 million worth of digital currency. FTX then secured $120 million in debt financing so that Liquid Global could resume its services. Crypto lending platform Genesis Global Capital has also suspended withdrawals, explaining that a huge number of clients have begun to withdraw their assets from the organization. Multicoin Capital, a cryptocurrency venture capital firm, has also been hit. Managing partners Kyle Samani and Tushar Jain admitted to holding "too much assets on FTX" by placing too much trust in their personal relationships. The company had hopes that it would be able to return part of its distribution, but realized that this would be a very difficult task. BlockFi - a crypto lending platform that has been dealing with significant challenges throughout 2022 - has been forced to give up after recent events. FTX had previously given the firm a $400 million loan and offered to acquire it for $240 million. After the recent events, BlockFi was unable to resume its activities as usual and also filed for bankruptcy.
Temasek, a Singaporean state-owned holding company owned by the local government, has invested $210 million in FTX International and $65 million in FTX US. Investments were subsequently reported to have dwindled to almost nothing after the collapse of the exchange. Hedge fund Galois Capital said that half of its capital was trapped in a troubled exchange. According to sources, this amount could be approximately $100 million. Paradigm, a venture capital company specializing in cryptocurrencies and Web3, was also "shocked" by the collapse. Some reports have said that the company has invested more than $270 million in FTX. Europe's largest digital asset investment and trading group - CoinShares - has reported that more than $30 million, or about 11% of its total net asset value, is stuck on FTX. Mike Novogratz' crypto-financial company - Galaxy Digital - owned over $76 million worth of assets. The world's largest asset manager - BlackRock - is also on the list. CEO Larry Fink revealed that his company had invested $24 million in FTX before the disaster. Tiger Global Management, a hedge fund led by billionaire Chase Coleman, has been involved in FTX fundraising on multiple occasions. While the exact amount of losses remains unknown, it can be assumed that Tiger Global was hit hard by the crash. Earlier last week, the Aurus Global crypto platform faced a “short-term liquidity problem.” Its institutional credit underwriter, M11 Credit, assured that both parties have joined forces to limit the risks for clients.
Morgan Stanley notes that a year has passed since the beginning of the crypto winter. The current decline in the price of bitcoin is compared with its fall in 2017-2018 (the first cryptocurrency then also lost more than 70% from the previous maximum). However, the leverage of the crypto market in this cycle is greater than in the previous one. This is likely due to the fact that this time around, crypto-currency institutions such as market makers, companies and investors have become the dominant traders in the market, while in 2017-2018, retail trade dominated, the article says. As such, Morgan Stanley expects further deleveraging, drawing attention to last month's depreciation of stablecoins, especially the largest of them, Tether (USDT). At the same time, the financiers noted that Alameda Research was the largest single recipient of this coin.
The collapse of the FTX crypto exchange and its affiliated structures, as well as the collapse of the BlockFi crypto lending platform, thank God, did not affect either the capitalization positions of the ASTL investment project and related ARNO, APRT and ACDI projects, or the activities and ecosystems of EcoMind and the project in general, since no financial assets of both the project itself and investors have ever been involved in the scams of FTX and investment funds and projects affiliated with it, and, accordingly, have not suffered. The project also did not conduct any financial dealings with the Genesis, Oxygen, AAX and Bitvo crypto platforms.
In the current difficult conditions, investors need to be able to directly and prospectively invest fiat and cryptocurrency assets in projects that provide a stable income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. And, at the same time, they have high liquidity. The ASTL project is a simple and elegant solution for potential investors - an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 18% annually) with payments in stablecoin (USDT).
The ASTL investment project demonstrates great prospects. Already, the creators have managed to attract more than $5 million into it, and the pace of investment continues to grow rapidly in a timely manner. If we analyze other similar projects in the cryptocurrency market, we can conclude that the price of ASTL tokens may increase several times when listings on exchanges start.
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