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FTX Collapse Has Forced Crypto Customers To Avoid Miami Nightclubs

Miami’s nightlife used to be light – until crypto exchange FTX and the shockwave caused by its sudden collapse sucked the life out of it.

During the early stages of the COVID-19 pandemic, Miami became a favorite getaway spot for individuals with excess cryptocurrency.

They consist of managers, white-collar professionals and managers of leading hedge fund institutions.

According to the Financial Times, the city of half a million people was bustling with activity until the crypto market was brought to its knees after the collapse of FTX.

Imagine these people paying $50,000 for a single table or renting an entire venue for an evening for $500,000 or more. These amounts were chump change for Miami’s crypto-spending elite.

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Image: Pinterest

$1 Million ‘Champagne Baths’

If that wasn’t crazy enough, consider this: A Crypto Firm (unnamed) Partyed With $1 Million of “Baths of Champagne” https://finance.yahoo.com/news/miami-nightclub-owners-struggling- slumping- 161352774.html – all paid in crypto – as rapper 50 Cent “brought the house down” in the background.

During this period, when the price of bitcoin hovered at the $60,000-plus level and crypto became ubiquitous, the wealthiest consumers flooded the city for extravagant parties to display their wealth.

“Who the hell are these people?” Andrea Vimercati, head of food and beverage at Moxy Hotel Group, expressed surprise when consumers revealed how much crypto they had in their wallets.

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Image: Coin Culture

Insane amount of crypto spending

Vimercati, former director of Groot Hospitality, which owns some of the hottest nightclubs in Miami, said:

“Suddenly these kids started coming off crypto and spending a lot of money — like an insane amount of money.”

Vimercati said that in his entire life he has seen more crypto wallets in one year than bank accounts.

Many believed that Miami could match Silicon Valley. And many people see cryptocurrencies as the future of finance. Miami is vying for position to become the world’s top crypto destination.

“Crypto is hugely important for the future of the city, and for how we currently position ourselves. We really established the epicenter for crypto,” Mayor Francis Suarez was quoted as saying in a recent interview by NPR.

FTX Collapse ends nights of wild parties

The FTX disaster shook the market and cast a fog over the business, and now, a little over a year later, the phones are silent when it comes to reservations for tables and VIP rooms. The crypto-partygoers in Miami’s clubs “disappeared completely,” according to Vimercati.

Today, Miami has its own cryptocurrency, known as MiamiCoin, and last year it hosted Bitcoin 2022 Conference, one of the largest meetings of digital currency enthusiasts in the world. More than 25,000 people attended.

Now, with the demise of FTX — and the bankruptcies of other crypto exchanges — club operators are unsure whether their regular high-rollers will return as the value of Bitcoin and other cryptocurrencies continues to fall.

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Crypto total market cap at $773 billion on the daily chart | Featured image from Holidify, Chart: TradingView.com

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