Residents say they are dealing with vacant apartments and job losses. They claim that these losses are a result of the bankruptcy of the FTX exchange. After the collapse of FTX, an entire country is affected.
A troubled economy
After the collapse of cryptocurrency exchange FTX, which was headquartered in the island country of the Bahamas, Bahamians are reportedly still trying to find a way to make sense of it all while remaining optimistic about the future. . According to a report by the Wall Street Journal (WSJ), the island country has been rocked by the FTX implosion. The country had encouraged cryptocurrency companies to feel at home with their bespoke regulations.
The Bahamas was hit hard by Hurricane Dorian in 2019 and the Covid pandemic in 2020. The country was already looking at ways to bolster an economy that was overly dependent on tourism and offshore banking. These two activities make up a large part of their gross domestic product. It seems that the current government of the Bahamas wanted to play a vital role in the economic recovery of the island.
The aftermath of the FTX implosion
Today, the community suggests that the sudden implosion of FTX has left a trail of unemployment on the tiny island. At full capacity, the FTX company provided employment for the local population. FTX spends over $100,000 a week on catering. Added to this is the establishment of a private shuttle service to transport workers to the island. According to the WSJ, FTX has also hired a number of Bahamians in logistics, event planning and regulatory compliance.
On Oct. 18, Cointelegraph reported that the Bahamian securities regulator had ordered the transfer of digital assets from FTX to a committee-owned portfolio “for security purposes.” According to a statement from the Royal Bahamas Police sent to Reuters on Nov. 13, an investigation into possible criminal misconduct related to the insolvency of FTX by Bahamian financial investigators and securities regulators is ongoing.
Indifference to the fate of the country
In the wake of FTX’s demise, some in the crypto community have been clear. Some said they felt no sympathy for the impact of the collapse on the small island nation. For example, Hacker News user Matkoniecz remarked along these lines. He explains that since the Bahamas helps wealthy individuals and companies evade taxes, his sympathy for the negative consequences is limited. »
With the collapse of FTX, many spendthrift foreigners who worked for the company and boosted the local economy are believed to have fled the island. Therefore, the situation turns out to be absurd. Bahamian guards guard nearly empty buildings.
Source: Cointelegraph
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