Bitfront closes its exchange due to cryptocurrency market volatililty
Bitfront, a California-based digital exchange, has become one of the latest victims of the ‘crypto winter’, announcing it will be closing for business. Existing customers will still be able to trade until the end of December, after which account withdrawals will be stopped. The firm cites challenges in the rapidly-evolving industry, despite efforts to overcome them. This news comes just after crypto lender BlockFi stated it is filing for bankruptcy and FTX, which received a $400m loan from BlockFi, imploded.
Over $200bn lost in crypto in past three weeks according to CoinMarketCap
Over $200bn has been lost in cryptocurrencies worldwide in the past three weeks, according to CoinMarketCap. FTX’s case is one of the most abrupt and difficult collapses in corporate America’s history; it has misdirected client funds and owes creditors over $3bn. Court filings revealed that regulators in Texas are investigating several celebrities involved with FTX, including American football player Tom Brady.
Bitfront’s closure highlights high risk in cryptocurrency investment
The move demonstrates the fragility of the cryptocurrency market. Bitfront was backed by Japanese social media firm Line and its announcement provides a warning of the risks involved in this sector. Although the UK will not be directly affected, it highlights the volatility of the industry and the high risk of investment. Investors and traders should beware and approach with caution.
