Social engagement, social mentions and social contributions have reached historic highs due to the FTX crisis. according LunarCrush, a social intelligence company
The report says:
“The million people speaking about crypto resulted in 2.4 million total crypto mentions (avg 1.8 million) and 6.9 billion engagements (avg 4.6 billion) across social platforms. This increase in conversation correlates with volatile price action across a spectrum of cryptocurrencies.”
Shockwaves have been created by the liquidity crisis affecting FTX, one the most prominent crypto exchanges. Blockchain.News reported that crypto market cap dropped below $900billion for the first time since January 2021, as news about FTX issues made headlines.
According to Jon Farjo, LunarCrush chief product Officer, the high level of social engagement shows that the FTX saga has gotten people talking amid wild volatility activity in nearly every crypto market.
“With social media being the source for breaking news for everything that’s happening with FTX, we’ve seen a massive spike in conversations. Everyone seems to have a unique take on the topic, with information breaking at an alarming rate. Those takes have created a lot of price movement, de-risking, and ultimately trust issues across the crypto market.”
Numerous crypto firms, such as Voyager and Three Arrows Capital lenders, have been forced to liquidate. It seems that they have been biting off more than their heads. LunarCrush CEO Joe Vezzani pointed out:
“The conversations around FTX and crypto far overwhelm any other crypto related event this year. This happens at a moment when we witnessed Terra, Celsius, Three Arrows, and many others fail in 2022. For crypto, this is no different than the banks failing in 2008, the only difference being the taxpayers aren’t stuck with the bill. It’s still a better system in the making.”
The Binance takeover deal has ended in a stalemate. It remains to be seen if FTX will go down the bankruptcy route.