DailyCoin
Published Nov 07, 2022 09:40AM ET
Updated Nov 07, 2022 10:30AM ET
FTX’s ETH Reserves Drop to the Lowest Level Since November 2020 After Binance Begins Dumping all FTX Tokens on its Books
As per emerging indications from CryptoQuant, FTX Ethereum (ETH) reserves have plummeted to their lowest level since November 2020. The report indicates that the ETH reserves went down by almost 300,000 in two days. Currently, FTX ETH reserves remain at 108,246.43.
In response, Nansen data shows how 26,600 ETH were sent from Alameda to FTX—leaving its remaining balance of 9,325 ETH.
Emergency collateralization
— Tim (@RiseOneArts) November 7, 2022
Further, Alameda research has sent out $16.67M worth of stablecoins ($MIM, $USDT, and $USDC) to FTX. Some say it’s an act of “emergency collateralization.”
Emergency collateralization— Tim (@RiseOneArts) November 7, 2022
It is worth noting that crypto billionaire Sam Bankman-Fried has holdings in both Alameda Research and FTX exchange. The latest development coincides with Binance’s announcement that they will dump FTX FTT tokens.
h2 FTX Could Suffer a Huge Crisis if Binance Sells its FTT Holding/h2
Last night, Binance CEO Changpeng Zhao (CZ) announced Binance’s desire to sell FTT tokens on its balance sheet, arguing that the exchange wouldn’t support “people who lobby against other industry players.”
Ellison submitted that Alameda has more than $10 billion in assets in its reserves. He established that the figures were not included in the reports that emanated. FTT currently trades at $22.23, down by more than 15% from its 48h high of $25.78.
h2 On the Flipside/h2
1) A competitor is trying to go after us with false rumors.FTX is fine. Assets are fine.Details:h2 Why You Should Care/h2— SBF (@SBF_FTX) November 7, 2022
There is a possibility that the recent development may lead to yet another death spiral, similar to the Luna fiasco last May. Just as a recession is on the horizon, this may bring down the entire crypto market.
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Written By: DailyCoin
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