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Cardano Avoids FTX Tragedy Thanks to This

Wed, 11/09/2022 - 11:47
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Gamza Khanzadaev
This is how Cardano avoided FTX tragedy, as ADA becomes least affected top crypto
Cardano Avoids FTX Tragedy Thanks to This
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Almost no top altcoin was able to avoid yesterday's events surrounding the collapse of major crypto exchange FTX, but some managed to get away with just a few scratches. ADA, Cardano's native blockchain token, lost less than 10% in value and was the least affected cryptocurrency of the top 10 by market capitalization.

The reason ADA probably got away with little bloodshed during the crypto market bloodbath was the fact that the token was not listed on the spot market on FTX in time. As recently as a week ago, FTX CEO Sam Bankman-Fried claimed that ADA would soon appear on the exchange, explaining its absence by the fact that Cardano is a "new" blockchain.

ADA Listing on FTX Could Turn into Tragedy, Cardano Founder and BitBoy Discuss

At the time, renowned crypto blogger Ben "BitBoy" Armstrong and Cardano founder Charles Hoskinson were also discussing whether ADA's listing on FTX would turn tragic in the context of a sell-off of blocked funds on Voyager, the crypto broker bought by the exchange.

Cardano benefits from FTX crash

The collapse of FTX turned into a double win for Cardano. First, it benefited alternatively from not being listed on the FTX spot market. The second was that Cardano's direct competitor, Solana, was kicked out of the market cap top, losing almost 40% in value on the back of FTX and affiliates' direct participation in its equity.

$320 Million in Solana Will Hit Market in 24 Hours, Get Ready

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.