A number of rumours and conspiracy theories have emerged on Twitter.
The recent crisis at FTX and the plummeting of the crypto markets have given rise to a host of rumors and conspiracy on Twitter and other sites, creating more confusion and chaos amongst the crypto community. These rumors cannot always be considered harmless and can cause considerable damage. One such instance was when Tether experienced volatility as reports emerged that FTX and Alameda Research were trying to short the coin, as it turned out Tether did not have any exposure to either of these two firms.
Amidst reports that FTX employees may not be receiving their salaries and that withdrawals from the exchange looked extremely ‘suspicious,’ a few tweets have made alarming observations, accusing the founder of Rari Capital, Jai Bhavani, of having been secretly paid by FTX to build protocols. Bhavnani denied the same in a personal tweet. Amidst all the anxiety and panic being spread on Twitter, FTX and its CEO have apologized profusely, but it remains to be seen how the situation pans out in the coming few days.
Michael Novogratz, CEO of Galaxy Digital said, “Does it feel illegal? We’ll see. It certainly seems immoral. I’m furious actually,” indicating to Sam Bankman-Fried. The recent crisis at FTX has surely damaged the reputation of the crypto community for days to come.