Us with negative views on cryptocurrencies after FTX collapse

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Us with negative views on cryptocurrencies after FTX collapse

There is a big jump in the number of Americans with negative views on cryptocurrencies after a series of bankruptcies, crypto collapses and scandals rocked the industry. After the collapse of FTX, a company founded by disgraced Sam Bankman- Fried, Americans' views on cryptocurrencies have suddenly soured.

The latest CNBC All-America Economic Survey shows that only 8 percent of the American public has a positive view of cryptocurrencies, down from 19% in March. In March, the number of Americans with a negative view on cryptocurrencies jumped to 43%, up from 25% in March.

The survey, conducted between November 26 and 30, included 800 Americans and has a margin of error of - 3.5%.

The collapse of FTX has affected the credibility of the companies, as investors move their holdings away from exchanges into safer cold wallets. CNBC also reported that it could still be a problem for cryptocurrencies to recover its credibility, since reputation looks to be central to its valuation.

The sentiment of mom- and pop investors really matters, Brian Brook, CEO of Bitfury and former comptroller of the currency, said at this week's CNBC Financial Advisor Summit that it is a 90% retail market. For the last 30 days when you read FTX stories on the front page of the Wall Street Journal, they get scared. People's willingness to invest is less because of the thinness of the liquid than it would have been. FTX and a handful of celebrities including Larry David, Tom Brady, Giselle B ndchen, Shaquille O Neal, Stephen Curry and Shark Tank spokesman Kevin O Leary were sued by FTX investors for deceptively encouraging consumers to invest in the company.

On November 11, the FTX filed for Chapter 11 bankruptcy protection. After the news, the disgraced FTX founder Sam Bankman-Fried, known as SBF, resigned as CEO of the FTX Group, and John J. Ray III was appointed the new CEO.

With each passing day it becomes clear that the FTX disaster is deeper than most people think. According to court filings, FTX is a complex web of 134 corporate entities around the world, collectively referred to as FTX Group. All of these 134 companies have been put into bankruptcy.

Bankman- Fried was the second-biggest donor in 2020 after he donated $5.2 million to Joe Biden's campaign.

Bankman- Fried founded FTX in 2019 with his co-founder Gary Wang. The Bahamas-based exchange FTX offers derivatives products such as futures and options and spot trading. FTX has become a key player in the space, rivaling Coinbase and Binance, once an unknown startup.