STORY: Bitcoin came under fresh pressure Monday (November 14) amid mounting fears for the whole cryptocurrency sector.
At one point the token slid below $16,000, down around a fifth just this month.
Regulators are now probing collapsed exchange FTX in the Bahamas, where it was based.
For investors like Bianco Research boss Jim Bianco the worry is contagion to other firms:
“FTX.com just didn’t have individual investors as their clients. They had other brokerage firms, hedge funds, trading shops.”
On Monday the focus turned to Crypto.com.
Boss Kris Marszalek took questions after an address on YouTube in a bid to calm jitters.
He said the firm had a robust balance sheet and took no risks.
The move came after investors took to Twitter over the weekend to question a large transfer of funds from the exchange.
Marszalek said the funds were recovered, and had no connection to events at FTX.
Now even some in the sector think tighter controls will be needed to restore confidence.
Binance chief Changpeng Zhao spoke Monday:
“So, but the regulators do have a role. We do need slightly more, we do need to increase the clarity of regulations, and the sophistication of regulations in the crypto space.”
Binance had briefly emerged as a saviour for FTX, before pulling out of a takeover.
Now Zhao says investors should avoid panicking over the whole sector because of what he says are one or two bad firms.