Concerns Grow Over FTX Collapse... Only 8% of Americans View Cryptocurrency Positively

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Fewer than one in ten Americans hold a positive view of cryptocurrency. Concerns surrounding the cryptocurrency market have intensified recently, following the bankruptcy filing of FTX, one of the world's top three cryptocurrency exchanges.

According to a nationwide economic survey released by CNBC on the 7th (local time), only 8% of American respondents viewed cryptocurrency positively in this survey. This is a significant drop from 19% in the March survey. Conversely, those with a negative outlook surged from 25% in March to 43% in November. The percentage of respondents who were neutral plummeted from 31% to 18%.

Recent bankruptcies of cryptocurrency-related companies, including FTX, have shifted public opinion in the U.S. further toward negativity. In particular, numerous scandals involving embezzlement, corruption, and fraud uncovered during FTX’s bankruptcy filing process have fueled these concerns. More than half of respondents in this survey, 53%, pointed out the need to strengthen cryptocurrency regulations.

CNBC described this as "the dramatic decline of cryptocurrency investments that were supported by Super Bowl ads and celebrity endorsements." Compared to the beginning of the year, the number of respondents who have invested in or traded cryptocurrency has increased, rising from 16% in March to 24% in November. However, 42% of investors hold a negative view of cryptocurrency, showing results similar to the overall respondent survey. This survey was conducted from October 26 to 30, targeting 800 Americans, with a margin of error of ±3.5%.

Meanwhile, Sam Bankman-Fried, the founder of FTX who has entered bankruptcy proceedings, is widely expected to face several years in prison. The U.S. Department of Justice, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC) are currently investigating the collapse of FTX. However, the House Financial Services Committee confirmed on the same day that there are no plans to summon Bankman-Fried for a hearing related to FTX.

On the same day, CNBC reported in a separate article that Bankman-Fried relied solely on "hype," attempting to sign an expensive sponsorship deal with Taylor Swift despite FTX’s financial difficulties. Sources said, "He was surrounded by 'yes-men,'" and "He belittled those who disagreed with him and would lash out at employees when angry."

As of today, Bitcoin is trading at around $16,845.23, down 0.77% from the previous session. Ethereum is down 1.44%, trading at $1,233.09.