Stuart Varney on FTX 'collapsing': Trust in cryptocurrencies is fading fast
Markets need the trust of investors, says Varney
FOX Business host Stuart Varney argues markets 'need the trust of investors.'
During his latest "My Take," "Varney & Co." host Stuart Varney discusses Binance refusing to bail FTX out of its collapse, arguing trust in cryptocurrencies is "fading fast."
STUART VARNEY: When you use the word "collapse" in the financial world, you're talking serious stuff.
Well, that word is being used today.
FTX, the big crypto exchange is collapsing. A rival firm, Binance, having taken a look at the books, now refuses to bail it out.
FTX is insolvent.
That means a lot of people who own crypto can't get their money out.
CRYPTOCURRENCIES STABILIZE AFTER FTX DEAL TURMOIL
Big money Silicon Valley people have lost their shirts: Sequoia Capital for example has just written off $150 million.
Giants like BlackRock and SoftBank are also on the big loser list.
FTX founder Sam Bankman-Fried lost $15 billion overnight.
He says he now needs $8 billion to pay off investors.
In this crypto environment, who will give him that kind of money?
FOX Business' Stuart Varney discusses the FTX collapse. (Fox News)
I admit, crypto is an industry that I have never really understood.
Is Bitcoin an inflation hedge? No. Is it a medium of exchange, like can you buy anything with it? Not really.
Is it an alternative to the dollar and other currencies? Apparently not. The dollar is the strongest in years!
So, what's it for? I don't know.
What I do know is that an awful lot of youngsters who put their stimulus checks into crypto have lost.
I know that some investment firms are having second thoughts.
And I know that governments are investigating. So is our securities and exchange commission.
Markets need the trust of investors. Trust in cryptos is fading fast.
With a mess like this, it's ok to use the word "collapse."