Crypto Market: People Will Still Try To Catch The Falling Knife
The crypto market is experiencing a bigger dip, much more than we expected, funny how few days ago we were hopeful that we are going to be seeing a glimpse of bull market soon. Here we are with the unexpected FTX saga that rendered a lot of people broke yesterday. Rumour has it that the CEO of FTX, Sam Bankman Fried has lost 80% of his net worth, worthing about $14 Billion few days ago, he is worth about $900 Million. This is probably due to his large stake on FTX through his FTT holding. FTX and Binance announcement about Binance acquiring FTX sparked FUD and made FTT extremely volatile which made the FTT token volatile made the value of the token depreciate by 80%.
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FTT is a falling knife right, just as Luna Classic, what people don’t know or a failing to remember is that, a token that has fallen 80% can also fall another 80% from the current price. This is probably the reason Binance warned its employees to not trade the token they finalise their FTX acquisition deal, people will always see the dip and some people’s instinct will be like, “ I’m buying the dip”, remember the Luna classic experience some people felt like that was a great opportunity to buy the dip and they got rekt. Just like the famous YouTuber KSI, who bought the dip worth $2 Million and watched his coin go down and depreciate to $200 if not lesser. The market is extremely volatile all the coins and tokens are tanking and losing their value, Solana went down in value as well. it was tempting to want to buy the dip, but right now, I dont know what saga is awaiting us in the future, if you check, about $1 Billion worth of Solana has been unstaked and probably waiting to be dumped once they get fully unstated, so expect more dumping in the value of Solana.
Rumor has it that FTX sold its Solana holdings to buy FTT when Binance was contemplating dumping its FTT holdings, a lot of people bought Solana and invested in Solana because of the FTX CEO, now the whole world knows that his company is insolvent, people have lost hope in Solana and are selling, anybody buying the dip right now is doing that at their own risk. Some one that hasn’t done their research to see that about $1 Billion worth of Solana has been unstaked and is ready to get dumped in the market will probably buy the dip now and catch another falling knife. The crypto market is very unpredictable right now, trade with caution and stay safe out there its going to be a long rough ride.