The rumors of an insolvent FTX crypto exchange that were later confirmed to be true have catalyzed the ongoing crypto market pullback, resulting in Theta Network (THETA) dropping to a local low of $0.824.
FTX Held $900 Million Against $9 Billion in Liabilities
It has since emerged that the FTX crypto exchange held as little as $900 million in sellable assets against a total of $9 billion in liabilities. Furthermore, a large portion of its liquid assets, $470 million, are in Robinhood shares held by a company owned by Sam Bankman-Fried but not listed in the company’s bankruptcy proceedings.
CZ Announces an Industry Recovery Fund to Help Crypto Projects in Financial Distress
However, further selling in the crypto markets might have been halted by a Tweet by Binance CEO CZ, who stated that the exchange was forming an ‘Industry Recovery Fund’ to help projects facing liquidity issues. He also welcomed other industry participants to assist in the endeavor.
He said:
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify.
Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.
Theta Network’s (THETA) $0.80 Support Holds
It is with this background that Theta Network’s (THETA) $0.80 has held, as the digital asset hit a local low of $0.824 amidst the developments surrounding FTX.
A quick look at the one-day THETA/USDT chart below, courtesy of Tradingview, shows that the digital asset remains in bearish territory below the 50-day (red), 100-day (yellow), and 200-day (green) moving averages.
Also, from the chart, it can be observed that Theta Network’s daily MFI (green), RSI (red), and MACD all hint at an oversold scenario that could lead to a short-term recovery, possibly to the $1 mark.
However, such a possibility is hinged upon no further bad news in the crypto verse and no additional surprises from the ongoing FTX saga.
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