The crypto market is experiencing a stunning downfall following the collapse of the exchange FTX (FTT-USD).
FTX filed for Chapter 11 bankruptcy protection followed a failed takeover by rival Binance (BNB-USD) earlier in the week, with Sam Bankman-Fried resigning as CEO after engineering a liquidity hole of billions.
“It’s a black swan event,” Wedbush tech analyst Dan Ives said on Yahoo Finance Live (video above). “It’s a cautionary tale for what you see in sectors and unfortunately, many will feel the pain.”
The ensuing fallout has sent crypto markets into a spiral.
“I’m piecing together all of the details, but I was shocked to see things unravel the way they did earlier this week,” Bankman-Fried said said in a tweet. “I will, soon, write up a more complete post on the play by play, but I want to make sure that I get it right when I do.”
Bankman-Fried added he will be working as an advisor now to try and bring “liquidity” to the platform’s users.
“These are some dark days in crypto — it’s very unfortunate the things we are seeing now with FTX,” Ives said.
Read More: FTX collapse is ‘a black swan event’: Wedbush’s Dan Ives