The crypto industry struggles with FTX fallout

The crypto industry struggles with FTX fallout 1

Last Updated on 48 mins by cryptoevent

With news of the ongoing FTX saga, bitcoin price has seen increased volatility, falling over 20% in less than a week. However, bitcoin is not the only cryptocurrency on the market that is taking its toll. Exchanges, institutional firms, and hard wallets have all suffered under the strain of industry uncertainty.

The Grayscale Bitcoin Trust Fund gets a 40% rebate

Earlier in the week, Grayscale Bitcoin Trust (GBTC) — the world’s leading institutional Bitcoin fund — saw a record discount of over 40%, with shares just under $8.80. While GBTC has seen a slow decline over the past year, with the ongoing bear market slowing adoption, the current price is a massive drop from the record high it held a year ago in November 2021 when it was $51.47 per share. Part of this stems from the structural issues GBTC suffers from. This is because it is an asset-linked mutual fund, but there are price differences. As a result, it has been reported that Grayscale is trying to convert the fund into an exchange-traded fund (ETF) that will stabilize the premium or discount of the price.

Ledger’s challenges related to scalability

Amid the FTX uncertainty, Ledger faced issues with users unable to withdraw from their hard wallets. According to Ledger CTO Charles Guillemet, this is the result of “massive usage” on their platforms, which has caused “few scalability challenges.”

According to Guillemet and the official Ledger Support, the outages should be fixed at this point.

The crypto industry fights with FTX fallout post first appeared on Coin Insider.

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