The crypto market is currently witnessing a significant rout, with most coins experiencing downturns not seen since 2020. However, while coin prices have been dumping, a new digital asset on presale is expected to see a price surge when it launches.
Fallout From FTX Insolvency Continues
The primary cause of the market downturn is due to insolvency at one of the largest exchanges. FTX, once a star in the market and the second-largest cryptocurrency exchange, entered into an agreement to be purchased by its largest competitor, Binance.
FTX has been hit with multiple rumors of insolvency following questions about its ties to Alameda Research, a quant trading firm founded by its founder, Sam Bankman-Fried. Customers began withdrawing their funds en masse after Binance announced a massive fire sale of the exchange’s FTT tokens, resulting in a bank run.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ Binance (@cz_binance) November 6, 2022
With the exchange in freefall, Binance again stepped in to assist FTX with its liquidity issues by purchasing its international business.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ Binance (@cz_binance) November 8, 2022
However, while that alone was enough to tank the market, additional revelations have come to light.
For instance, reports have confirmed that Binance would likely back out of its deal to purchase FTX. When the deal was announced, Binance CEO, Changpeng Zhao, claimed that they had entered into a non-binding letter of intent to purchase its competitor.
However, a Bloomberg report revealed that FTX underestimated its liabilities, which could be a bridge too far for Binance to cross. As a result, the company might not move ahead with the deal.
A bankrupt FTX would be a major issue for the crypto market. And unless they get things together, coin prices would likely tumble even further.
Market Reacts to FTX Insolvency
The crypto market has suffered as events unfolded over the last week. Bitcoin dropped to $15,500 on Wednesday, the lowest level since November 2020. Other major altcoins also experienced massive downturns, with the market in freefall.
The crypto market has a capitalization of $836 billion at press time – a multi-month low. With more shoes expected to drop in the coming days, there’s a general sense that the bottom hasn’t yet been reached.
RIA Still Primed For Gains
As investors continue to watch the market to see how things unfold, there are still opportunities for gains.
One digital asset that has many investors talking about is RIA. It is a blockchain gaming token affiliated with Calvaria: Duels of Eternity. In Calvaria, players purchase non-fungible token (NFT) trading cards to build winning gaming strategies as they battle with other players and their characters.
Calvaria’s RIA token is gifted to battle winners as earnings. The asset can also be staked, with holders locking their tokens in the gaming protocol for the chance to win more. Players get to participate in governance via the Calvaria decentralized autonomous organization (DAO).
The RIA token is now available on presale and is doing quite well. Three stages out of ten have been sold out, and the fourth is 75% completed. Overall, RIA has raised over $1.5 million and is still climbing.
Stage 3 – Sold Out!
We're happy to announce that 3rd stage of our presale has been sold out and next stage is officially open!
Stage 4 Is LIVE
30M RIA | 1 USDT = 40 RIA
Don't miss a chance to get RIA at the best price
— Calvaria: Presale is Live! ✨ (@CalvariaP2E) November 4, 2022
The presale launched with RIA trading at $0.010. However, at the fourth presale stage, RIA’s price surged to $0.025. Investors can purchase 40 $RIA for 1 USDT, and RIA’s price is expected to hit $0.055 after the presale ends.
Calvaria’s developers are also looking at a post-presale future. They’ve secured partnerships to list the token on KuCoin and Gate.io, two of the world’s largest crypto exchanges, sure to help RIA gain more investor exposure. Buy Calvaria!
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