The “butterfly effect” of the FTX stock market collapse could aid the collapse of a Brazilian cryptocurrency, a stablecoin that has been among Brazilians’ favorites in recent months.
The various events that have happened since the past week, which are far from over, started when a spreadsheet leaked out with alleged data pointing to the bankruptcy of Alameda Research, part of the FTX group.
The broker’s CEO, Sam Bankman-Fried, tried to contain the rumors and said his company was not insolvent. It wasn’t even two days before Binance emerged as the savior of FTX, with CZ announcing the purchase of the competitor.
Despite this, Binance has given up buying FTX, and while rumors continue to cause confusion among investors, the market is suffering losses.
Brazilian Cryptocurrency Enters Hurricane Eye Of FTX Collapse
The Brazilian cryptocurrency Brazilian Digital Token (BRZ), a stablecoin among the favorites of Brazilian traders, could be in trouble due to the collapse of the FTX exchange.
This is because the cryptocurrency has more than 90% of the global trading volume on FTX, according to data consulted on CoinMarketCap by the live coins this Wednesday (9).
On the FTX exchange, BRZ has the dollar (USD) as the main pair, with a volume of 41% in the last 24 hours. Volume relative to Bitcoin is 32% and USDT is 20%.
It is worth remembering that, according to Mercado Crypto, the NovaDAX exchange is the only one to list the BRZ in relation to the BRL, but the volume has not even reached BRL 85 thousand in the last 24 hours.
Brazilian stablecoin drops
Another situation that catches the attention of traders who love BRZ is about the withdrawal issues facing FTX. That is, withdrawing tokens from the platform takes longer than many expect.
With the uncertainties, the price of BRZ, which should have been R$1.00 each, went through strong swings this Wednesday, reaching R$0.96 per unit.
BRZ was considered the largest Brazilian stablecoin in the cryptocurrency market until then and was founded in 2019.
According to recent data from the Federal Revenue of Brazil, as of September 2022, BRZ is the third most traded cryptocurrency by Brazilians, with more than R$500 thousand declared.
What does the CEO of Transfero, the company that issues the BRZ say?
in conversation with the live coinsThiago Cesar, CEO of Transfero, said it is very negative for the market to see a large company go through trouble.
Thiago thinks that many companies will still have problems. However, BRZ is an independent operation of FTX and should not be compromised.
“FTX is a Transfero customer. We process PIX payments to FTX, but we have no actual exposure to that company. It is also clear that FTX is a shareholder of Transfero, this is a well-known fact in the market. But they do not interfere in the management of Transfero in any way, so much so that we partner with several other companies in the industry such as Bybit, Crypto.com, Bitget, Finex and even national exchanges.”
According to Transfero’s CEO, as an FTX payment processor, it’s unfortunate to see a hitherto broken partnership collapse, but with other customers, there are no issues.
About BRZ, Thiago guarantees that Transfero does not have the transfer collateral itself, so FTX has no involvement in this.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
