Cryptocurrency lender BlockFi, which filed for bankruptcy protection this week, is among the first victims of a domino effect caused by the collapse of Bahamian cryptocurrency exchange FTX earlier this month, according to a Thai crypto expert.
Sanchai Popli, CEO of Cryptomind Advisory Ltd, said on Tuesday it remained to be seen whether the domino effect would cause a catastrophic impact on the cryptocurrency market.
“I believe several crypto operators are at risk of bankruptcy, especially those who have been borrowing digital assets at a ratio far higher than their own assets,” he said. “Also, investors affected by these collapses will have to wait a long time for the debt settlement process before they can get their money back.”
Thailand has become a major crypto-trading hub in Asia, logging over US$100 billion in transactions per year. Thai crypto traders lured by the high-risk asset were badly burned when local exchange Zipmex froze withdrawals after being caught in the market meltdown earlier this year.
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