[ww520]

The collapse of FTX will impact the whole crypto space negatively. Nothing is spared.

1. All the alt-coins in FTX/Alameda Reasearch holding will be liquidated. E.g. Solana has been down >40% already.

2. The value of the FTT tokens issued by FTX valued at billions has evaporated. The value of FTT were used to buy other coins, directly and indirectly inflated all of them, including Bitcoin and Ethereum. When the value of FTT evaporates, it can be thought of as billions have been sucked out of the crypto markets. The prices of all coins will drop, including BTC and ETH.

3. The cascading falling of the alt-coins. Some alt-coins will fail. Just now there's an incoming $1B+ Solana tokens being unlocked and will be released to flood the market. Other alt-coins will be impacted in a similar way. One can argue some of these coins are created out of the thin air just like FTT. Their value can simply vanish just like FTT.

[canoebuilder]

Having watched the MtGox, Mark Karpeles, Willy Bot saga, and then see that same pattern repeat over and over really is almost surreal.

What’s funny, in a tragic kind of way, is that initial market manipulation from Karpeles is what drove the initial wave of VC interest who thought they were seeing an indication of genuine widespread demand. And then they couldn’t be left holding the bag and it just snowballed where we’ve seen this ongoing pattern of ever bigger scams and market rigging.

[piva00]

Same for me, and it's the whole pattern, down to the same talking points being shared by people in cryptocurrency forums. There's a level of hope and coping with cryptocurrencies that is hard to see outside of gambling addiction.