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What Impact Will the FTX Binance Scandal Have on Cryptocurrency Gambling?By Shane Addinall Nov 19, 2022 OpinionWe review the shocking demise of one of the world’s largest crypto exchanges and delve into what it could mean for the crypto gambling space and if it presents any opportunities.
The lingering effects of the recent crypto-winter were exacerbated over the past week by the shocking collapse of FTX. The popular cryptocurrency exchange was on the brink of being acquired by market leader Binance when the deal came crashing down, taking most of the virtual currency economy with it!
What Happened with FTX and Binance?
With a market valuation of $32 billion and a daily transaction ledger of around $3.5 million, FTX appeared to be a stable and trustworthy crypto exchange. Unbeknownst to its investors and users, the company was, unfortunately, set up in a cojoined manner that meant the woes of one entity would negatively impact the other.
Investigations by the Justice Department and the Securities and Exchange Commission have proved that the owner of FTX, Sam Bankman-Fried, was holding significant amounts of its FTT tokens in his Alameda Research hedge fund.
The decline of cryptocurrency prices during the current bear market put both FTX and Alameda Research under a lot of financial pressure.
In response to this revelation, rather than buying FTX as had initially been intended, Binance divested itself of its FTT holding to safeguard its investors. The news of this divesture caused a run on the virtual token, resulting in more than $6 billion in withdrawals in under 72 hours.
What Does This Mean for Crypto Gamblers?
Thanks to the multi-dimensional value that the blockchain and cryptocurrencies bring to the online gambling industry, this crypto mini-crash will have no long-term impact on the market.
casino software developers will continue leveraging the platform's speed, security, and low costs to create new experiences. At the same time, players will continue to enjoy near-instant withdrawals, provable fair gaming and high levels of anonymity and safety.
However, viewing crypto as an investment vehicle rather than a daily-use currency will present some exciting opportunities. While portfolio values have been diminished in the short term, the rush to sell can mean the chance to stock up on key digital currencies at much lower prices and the rise of new low-cost altcoins.
We recommend making calm, rational buying and selling decisions regardless of how you approach the current situation. Never stake more than you can afford to lose if you decide to buy. Whether playing Online Slots or investing in Bitcoin, the same advice is true, always gamble responsibly.
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