FTX’s ETH Reserves Drop to the Lowest Level Since November 2020 After Binance Begins Dumping all FTX Tokens on its Books

The reserves of FTX Ethereum (ETH) have plummeted to their lowest since November 2020.
FTX has been receiving funds from Alameda Research in the form of Ethereum and stablecoins.
The latest development coincides with Binance CEO CZ’s announcement that they will dump FTX FTT tokens.
CZ defended the move, saying it was not an attack on a competitor.
The market is increasingly concerned that this may cause a death spiral similar to Terra-Luna’s in May.

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.

FTX Could Suffer a Huge Crisis if Binance Sells its FTT Holding

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.

On the Flipside

The news about possible insolvency does not bother Sam Bankman-Fried, as he thinks the recent news is based on “false rumours” and affirmed that FTX has enough funds to cover all the client’s holdings.

1) A competitor is trying to go after us with false rumors.

FTX is fine. Assets are fine.

Details:

— SBF (@SBF_FTX) November 7, 2022

Why You Should Care

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.

Related Posts

Bitcoin analysts eye weakening US dollar as BTC price fights for $17K

BTC price action stays cool over the weekend as Bitcoin bulls attempt to flip $17,000 to support. Bitcoin (BTC) bulls attempted to retake $17,000 into the Dec….

Crypto Marketing: How to Make a PR Product and Get Organic Traffic

Crypto marketing is very important for cryptocurrencies, as the right promotion allows your coin to be noticed among thousands of other projects. One of the methods of…

Cardano’s Hoskinson Praises Algorithmic Stablecoins, Touts Them As The Gold Standard Of The Digital Age

Charles Hoskinson believes that algorithmic stablecoins are the way to go and that they have the ability to undermine the monopoly of government-issued fiat. In a recent…

Regulators face public ire after FTX collapse, experts call for coordination

U.S regulators and their failure to avoid another crypto contagion have raised a lot of questions over their credibility. 2022 is nearing an end and might go…

Addresses That Sat Idle for Years Transferred 1,221 Bitcoins Worth $20M Over the Last 4 Days

During the last seven days, bitcoin’s price has remained above the $16K region following the aftermath of FTX’s collapse. Since then, a number of ‘sleeping bitcoins’ that…

Are Metacities a Step Forward in the Metaverse, or Just a Pipe Dream?

Mark Zuckerberg’s announcement of a Facebook rebrand and his concept of a Metaverse has spurred advances in the sector, including the rise of “metacities Facebook became Meta,…

Generated by Feedzy