The deal between payments giant Visa and crypto exchange FTX to launch a debit card initiative in 40 countries across the globe was announced only a month ago. However, due to FTX’s recent bankruptcy and insolvency concerns, Visa quickly withdrew the program.
Last week, Binance CEO Changpeng “CZ” Zhao stated that all of Binance’s FTX Token (FTT) holdings will be liquidated. This unintentionally triggered a bank run, which in turn caused FTX liquidity concerns.
The native virtual currency of the FTX trading platform, FTT, gained about 7% in October as word regarding the deal between FTX and Visa spread online, reaching a peak of $25.62. FTT is currently trading at $1.62.
It is not surprising that firms like Visa are trying to disassociate themselves from the fallen crypto exchange given how rapidly it has gone downhill.
On November 11, the Securities and Exchange Commission of Cyprus (CySEC) reportedly demanded that the exchange cease operations for its European subsidiary following FTX’s filing for Chapter 11 bankruptcy in the United States.
Another case involved the banning of FTX use of Plaid’s products due to “concerning public reports” of fraudulent activities. Plaid is a fintech startup that eases communication between financial services applications and clients’ banks and credit card providers.
