Adani's rout outruns the meltdown of Terra, FTX, 3AC that rocked crypto market
1 min read . Updated: 07 Feb 2023, 05:34 PM IST
Premium- The losses owing to the carnage in Adani stocks have even outrun the infamous collapses of Terra tokens, Three Arrow Capital, and FTX Group in the cryptocurrency market.
Due to buying in Adani Ports and Adani Enterprises, the Gautam Adani-backed conglomerate gained a market valuation of over ₹10,160 crore on Tuesday cumulatively. This would be approximately an over 1.2 billion dollars gain in a single day. But still so little compared to the market rout of more than 100 billion dollars that was trigged in Adani's empire after a US-based short-seller's report. The losses owing to the carnage in Adani stocks have even outrun the infamous collapses of Terra tokens, Three Arrow Capital, and FTX Group in the cryptocurrency market.
Adani stocks are in a free fall since January 24, after a US-based short-seller Hindenburg Research accused the conglomerate of stock manipulation, tax evasion, and fraud schemes among others. Also, concerns over Adani's funds' requirement for expansion plans and meeting debt services escalated after it withdrew its ₹20,000 crore follow-on public offer. These factors triggered a market rout, and by end of February 6th, the cumulative losses topped $110 billion.
The crisis sweeping over Adani Group escalated to the point India's opposition parties took to the streets to press for a probe into allegations by Hindenburg.
The cryptocurrency market is unregulated and is currently suffering a liquidity crunch that began in mid-May of last year with the Terra sisters crash to near zero. The losses were billions of dollars! Terra's crash was the onset of winter days in the crypto market, and its impact still lingers.
The year 2022 will go down in the history of chaos in the crypto market due to macroeconomic uncertainties that led to an extreme bearish tone across market instruments including equities. Deep corrections were seen in both equities and cryptocurrencies.
