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One of the biggest stories for financial markets at the end of 2022 is the collapse of the FTX cryptocurrency platform and the continuation of the crypto winter.
Here is an overview of the current value of an investment in the main cryptocurrency Bitcoin BTC / USD, according to the launch of FTX.
What happened: Leading cryptocurrency platform FTX faced liquidity issues in late 2022 that ultimately led to the company filing for bankruptcy and company co-founder Sam Bankman Fried, to be arrested in the Bahamas.
Liquidity issues and the bankruptcy of FTX have put additional pressure on major cryptocurrencies Bitcoin and Ethereum ETH/USD, each down more than 50% since the start of 2022. The FTX token FTT/USD also collapsed due to bankruptcy.
Prior to the FTX issues, the company was one of the top three cryptocurrency platforms by trading volumes and one of the most widely recognized names in the space.
FTX was valued at $32 billion and Bankman-Fried, who co-founded the company with Gary Wang, was worth $16 billion. The company was aggressively spending on sports sponsorships and sponsorship deals, all because the company may have committed fraud and embezzled user funds.
The company officially launched operations on May 8, 2019 and the FTX token whitepaper in May 2019 with a launch several months later.
While the price of cryptocurrencies was down in 2022, anyone who has followed the FTX story from the start may have had better luck.
Related Link: Best FTX Alternatives: How to Protect Your Crypto
Investing $1,000 in Bitcoin: When FTX officially launched its operations, Bitcoin was trading between $5,794.72 and $5,989.98.
A $1,000 investment in Bitcoin at its highest price on FTX’s launch day could have bought 0.1669 BTC.
The $1,000 investment in Bitcoin would be worth $2,964.37 today based on a price of $17,761.38 at the time of writing. This represents a gain of 196.4% compared to the initial investment. The investment is said to have gained an average of 54.8% per year over the past three years and seven months.
At the highest Bitcoin price in November 2021, the $1,000 investment would have been worth $11,480.99.
Check out Benzinga’s coverage of all things FTX and Sam Bankman-Fried here.
Photo: Rcc_Btnvia Shutterstock
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