The global crypto market registered a massive plunge on Wednesday due to the increased volatility due to Binance’s massive announcement of acquiring FTX. However, the top digital asset firms have come forward to cut out the ongoing FUD in the market.
Crypto firm clears take over FTX news
Circle (USDC), the world’s second largest stablecoin issuer has cleared the air over its relationship with FTX and Alameda Research. Jeremy Allaire, CEO of Circle stated that there is a lot of FUD accruing out there. However, Circle holds no material exposure to FTX and Alameda research.
It mentioned that SBF’s FTX has been a customer of Circle Payment APIs for around 18 months. The exchange provided card and ACH services for users. While Circle’s payment beta product uses FTX and other exchanges for Bitcoin/Ethereum Liquidity.
Circle added that Alameda was a customer of Circle for many years. It was using the USDC service for creating and redeeming USDC.
Earlier, Brian Armstrong, CEO of Coinbase showed sympathy for the people involved in the situation that emerged due to Binance and FTX clash. He cleared that Coinbase doesn’t hold any material exposure to FTX.
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He mentioned that this event is a direct result of risky business practices. While this also includes conflicts of interest between major entities.
Crypto market plunges
However, another crypto exchange, OKX showed its concern over the current situation. Jay Star, CEO of OKX stated that it will be just a matter of time before the community will bounce back. He also mentioned that OKX does not have any debt exposure to FTX, FTT or Alameda Research.
Nexo, a crypto lending firm also informed that they hold $0 net exposure to FTX and Alameda.
Meanwhile, the global crypto market cap has dropped by major 13% over the past day due to the recent Binance announcement. It has shrunk to stand at $853 billion.
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