Early on Monday, cryptocurrency prices experienced a minor recovery after dropping over the weekend as a result of FTX’s bankruptcy. Since other businesses are sending out new cautionary signals, the true extent of the contagion has not yet been determined. To keep up with the most recent cryptocurrency news, scroll below.
In an effort to “avoid further cascading negative effects of FTX,” Binance wants to establish an industry recovery fund for cryptocurrency projects experiencing liquidity issues. This is according to CEO Changpeng Zhao’s tweet from Monday.
The official bankruptcy filing by FTX and the early resignation of CEO Sam Bankman-Fried caused a decline in cryptocurrency prices on Friday.
A regulatory investigation into FTX’s lending practices and management of consumer funds is ongoing.
The Wall Street Journal reported that Binance said last Wednesday that it was abandoning its plan to purchase FTX. In an effort to address FTX’s liquidity crisis, Binance disclosed that it had signed a non-binding letter of intent to acquire FTX’s non-U.S. operations.
Early on Monday, Bitcoin recovered $16,600 after overnight losses brought it as low as $15,800. The biggest cryptocurrency in the world was trading beyond its $21,000 mark the previous weekend before FTX collapsed. Bitcoin’s losses brought it to two-year lows.
On Monday morning, Ethereum rose from its overnight low of $1,170 to reversal near $1,250. Prior to the FTX drop, the #2 cryptocurrency was trading close to $1,650.
This article was originally published here.