Visa Pulls the Plug on FTX Partnership
In a dramatic turn of events, Visa has decided to end its collaboration with FTX just a month after launching a debit card program aimed at 40 countries. This decision comes hot on the heels of FTX’s stunning slide into insolvency and bankruptcy.
How FTX Went Bust: A Chain Reaction
It all started when Binance’s CEO, Changpeng “CZ” Zhao, announced his company’s plan to liquidate its entire holding of FTX’s native token, FTT. This news sparked a bank run on the exchange, leading to significant liquidity issues. If you were mistakenly thinking this was a calm sea in the crypto world, it turned out to be more akin to a tsunami.
The Aftermath: FTT’s Plummet
Remember October when FTX and Visa were the talk of the town? The FTT token saw a jump of about 7% at that time, peaking at $25.62. Fast forward to today, that same token is staggering around at just $1.89. Talk about falling from grace!
Visa’s Statement: Security Over Partnership
In an official statement, a Visa spokesperson expressed regret over the situation but emphasized the company’s commitment to security and trust. “We are monitoring developments closely. Our focus remains on security in all our undertakings, digital currency or not,” they stated. You can almost see them adjusting their ties and pretending that this is just another day in corporate America.
Others Follow Suit: The Ripple Effect
Visa’s not flying solo in cutting FTX loose. The Securities and Exchange Commission of Cyprus (CySEC) has issued a request for the exchange to halt operations in Europe as a reaction to FTX’s Chapter 11 bankruptcy filing. Meanwhile, fintech company Plaid has suspended FTX US’s access to its services, citing “concerning public reports” of fraudulent activities. It appears this ship is sinking faster than anyone could have anticipated!
