A Major Setback Comes FTX’s Way as Visa Wants to Break Ties

How to Buy Bitcoin with Visa or Mastercard Credit and Debit Cards in Canada

Visa, a global payments solution provider has been among the major non-crypto firms that are pro-crypto. The firm knows that the future of cryptocurrencies is very promising, so it wants to become part of that future.

The company has been playing a major role in bringing cryptocurrency technology to the mainstream sector. To achieve its goal, Visa has partnered with many crypto firms.

Visa Terminates Debit Card Deal

Among these firms was FTX exchange and Visa was to launch FTX debit cards for the exchange. Just a month back, Visa had signed a deal with FTX exchange to launch Visa-powered FTX debit cards.

The company had announced that their deal with FTX is to launch the debit card in multiple countries. Later, Visa hinted that it would be rolling out the FTX debit card in forty countries from all over the world.

Unfortunately, the FTX investors will not see this coming to fruition. The reports claim that Visa has announced that they have terminated their deal with FTX.

Although the company terminated the deal very abruptly it seemed to be the right step taken by Visa given FRX’s current situation.

As announced, Visa is no longer in collaboration with FTX exchange for the creation and launch of FTX Visa debit cards.

In the official announcement, Visa confirmed why it was forced to terminate its deal with FTX. Visa has reportedly cited bankruptcy and insolvency issues with the FTX exchange forcing them to withdraw.

FTX’s Liquidity Crisis

The liquidity crises rose for FTX after a leaked balance sheet showed the exchange was not loyal to the investors. It was backing FTTs at Alameda Research with the FTT stored by investors in its exchange.

This is when CZ (Binance CEO) announced they would fully liquidate the FTT holdings. It led to the crash of FTX as it was left with billions in debt.

Since then, the FTX exchange has continued facing one drawback after another, and eventually, the exchange announced Chapter 11 Bankruptcy.

Spike in FTT Price

Back in October, when Visa announced its partnership with FTX, the trading price of FTX tokens rose significantly. It experienced a 7% boost in its trading price, rising up to $25.62.

Due to the last week’s debacle, the trading price of FTT has plunged to $1.89.

The trading price of FTT did experience a slight boost when Binance announced it was acquiring FTX. However, it backed out the next day leaving FTX with no support, forcing FTX to file bankruptcy.

If more investors and supporters keep backing out, FTT would soon lose all value and become history.