The follow-on affects of FTX halting all withdrawals are already being felt across the crypto industry. Liquid Meta (NEO: LIQD), which bills itself as a bridge between traditional finance and decentralized finance, is one of the first publicly traded firms to announce its exposure to the collapse.
The company this morning revealed that it has certain holdings held at FTX.com, including cash and digital assets. The exchange is reportedly used by Liquid Meta for the “onboarding and offboarding of fiat currency,” as well as for digital assets used in its mining operations.
Overall, Liquid is said to have total assets worth $7.5 million held at FTX, which was used further as collateral to borrow $3.2 million in additional stablecoins and digital assets. The bright side, is none of those holdings are said to include FTT, FTX’s self-issued coin. The downside, is that none of the funds can be withdrawn by the company at this time, with current requests remaining unprocessed.
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In its most recent financials, which are for the period ended August 31, the company reported a cash and cash equivalents position of $6.9 million in restricted cash and $1.2 million of unrestricted cash, while $28.9 million was classified as receivables from decentralized platforms. The firms filings indicate it utilizes Kraken, FTX, and Binance as exchanges for facilitating transactions.
Other public names impacted by the withdrawal halt are said to include Galaxy Digital, whom has US$76.8 million in cash and digital assets held at the firm.
Liquid Meta last traded at $0.26 on the Neo.
Information for this briefing was found via Sedar and the sources and companies 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.
