Crypto markets sink as funds drained from FTX switch out of Ether
He added that hype and speculation over the minting and trading of tokens “has generated a massive distraction from building actual products and services that reach consumers, solve actual problems.”
Ether has underperformed Bitcoin over the past couple of sessions in part amid speculation that some of the $US663 million drained from FTX as it slid into bankruptcy is now being transferred out of the token.
The person or entity that raided FTX emerged last week as one of the world’s biggest holders of Ether, with a haul of about $US288 million.
Blockchain specialist Chainalysis said in tweets Sunday that funds taken from FTX “are on the move” and some were being shifted from Ether to Bitcoin, likely as part of an effort to “cash out.”
The heady mix of corporate failure and potential criminality atop a 72 per cent drop in a gauge of the top 100 tokens over the past year is naturally leading to all kinds of questions about the future — or lack thereof — for digital assets and their underlying blockchain technology.
Pershing Square Capital Management founder Bill Ackman said on Twitter that crypto represents less than 2 per cent of his assets while adding that he remains positive on the sector overall, comparing its potential social impact to the telephone and the internet.
Bitcoin was trading at about $US16,200 as of 10 a.m. in Singapore, a far cry from its November 2021 record high of almost $US69,000. Ether was hovering around $US1130.
Bloomberg
