Amid all the wariness of crypto investors following the FTX contagion that took several crypto names, even the slightest aberrations to a firm’s operations can raise a potential red flag.
Twitter user Matteo Flora posed the query on electronic trading platform eToro’s liquidity status upon learning that the CEO of Italian ambulatory service Centro Medico Santagostino, Luca Foresti, posted on LinkedIn his trouble of withdrawing from the platform.
“Is @eToroItalia @eToro going bankrupt? A fairly known Italian Enterpreneur (Luca Foresti) seem to be UNABLE TO WOTHDRAW. Not a very good signal for a company heavily involved in #Crypto,” he tweeted.
But for eToro, this is just an isolated issue.
“Let’s keep calm: eToro is not going bankrupt. This looks like a simple single account issue. The user simply needs to contact our customer service and the problem will be investigated,” the Italian eToro team replied.
The main Twitter account of the platform also weighed in, saying the problem may be “a specific account issue.”
To support the platform’s point, another user @emacosc said he was able to withdraw without a problem, claiming the original post suggesting bankruptcy was a “baseless accusation.”
The demise of cryptocurrency exchange FTX was a terrible blow to the digital asset sector, with founder Sam Bankman-Fried becoming a symbol of the asset class’s troubling lack of regulation.
But despite the current low, eToro co-founder Ronen Assia believes cryptocurrency is here to stay.
“Taking the latest collapses and making assumptions regarding the entire industry is wrong… The collapse of Enron or Bernie Madoff didn’t result in their entire industries falling apart. Therefore, I don’t think that some of the bad decisions that have been made are going to be the end of the crypto sector either,” Assia said in a conference.
When asked if the FTX contagion hit the platform, Assia said that they “aren’t a single asset investment platform.”
“Due to the pandemic many new investors entered into trading and it is part of our role to explain to them how this works. We are also seeing investors moving from crypto into bonds and shares,” he added.
Information for this briefing was found via Calcalist and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.