El Salvador’s President Bukele has denied that the FTX is in possession
New York City: After it was reported that Nayib Bukele, the president of El Salvador, was storing some of the country’s Bitcoin on the FTX cryptocurrency exchange, Changpeng Zhao (CZ), the CEO of Binance, appeared to provide an update to the cryptocurrency community on the rumors that were being spread about the alleged situation.
CZ took to Twitter on November 10 to correct the internet misinformation that El Salvador owned Bitcoin on FTX. This came after billionaire Mike Novogratz, a proponent of the Terra (LUNA) ecosystem prior to its collapse, stated during an interview with CNBC’s Squawk Box that El Salvador owned Bitcoin on FTX.
“Man, there’s a lot of misleading information floating around out there. Just now, President Nayib and I have been in conversation with one another. He made the announcement that we (referring to president Bukele) do not own any Bitcoin in FTX and that we have never had any kind of business with them. God is good!”
CZ is said to have said this
The Bitcoin community has reacted to Novogratz’s statement.
It is crucial to note that other members of the cryptocurrency community took issue with these words. Stacey Herbert, of the “Max & Stacey report,” tweeted that Squawk Box should withdraw the statement, and this was one of the responses that received the most attention.
“I doubt whether it’s real, but the El Salvadorian government’s cryptocurrency was reportedly on FTX, and they were requesting the extradition of Sam [Bankman-Fried].” The consequences will be felt to a significant degree.”
Novogratz had remarked
The largest digital asset, Bitcoin (BTC), has recovered despite being hindered by the ongoing FTX scandal, which led to cold wars between exchanges, adding $15 billion in just 15 minutes. Following this, the most recent report on the United States Consumer Price Index (CPI) also revealed better results for October than had been anticipated.
Bitcoin appears to be leading the way in the recovery process as the coin returns to above $17k after hovering below the level earlier on while the crisis was in progress. This comes as a result of the recent intervention of Justin Sun, the founder of Tron, in the saga surrounding FTX. Crypto markets could soon be looking to recover.
What factors could have contributed to the spread of false information?
The bogus charges made by Novogratz are most likely caused by El Salvador’s recent purchase of more Bitcoin. This is the most plausible explanation for Novogratz’s actions. Because of the addition, it’s possible that the reader got the impression that the country had been holding its Bitcoins with FTX.
On Thursday, President Nayib Bukele invested over $1.5 million more of his country’s money into bitcoin, despite the fact that the venture is now losing money. Following the publication of the acquisition announcement, Bukele posted the following to his Twitter account:
“Bitcoin is the currency of the future! I am grateful that your pricing are so reasonable.
Bukele claims that his country’s government purchased 80 bitcoins at an average price of $19,000 apiece. Less than half of the total sum was what the government typically paid for its previous portion of 105.6 million dollars.
According to the monitoring website nayibtracker.com, El Salvador has paid an average of almost $46,000 per coin since September. This figure represents a loss of 56%, which is equivalent to approximately $59 million.
“I can tell that there are a few individuals who are anxious or worried about the price of Bitcoin on the market.”
“My advice is to take your attention away from the graph and go on with your life. He went on to say that your investment in Bitcoin is risk-free, and that after the market correction, the value of your Bitcoin would skyrocket. The key is to be calm and patient.
Even in May, when he boasted about “buying the decline” in the price of the currency, Bukele, who declared the cryptocurrency legal money the previous year, remained an ardent admirer of the digital asset. In spite of the volatility that is now occurring in the market, the value of the currency has decreased even more, hitting new all-time lows.