FTX’s seemingly sluggish withdrawals increase eyebrows

withdrawal transaction In response to multiple on-chain knowledge sources, customers using FTX, the third largest crypto option by volume, are not limited to or in any way limited to modest amounts.

Stablecoin withdrawals from FTX fell to zero Tuesday at 6 a.m. ET, in response to information On Crypto Quant. Meanwhile, withdrawals of Ether, Ethereum’s token, have been smaller during the same time frame, Cryptoquant data also shows. has shown, etherscan information It has also been revealed that FTX withdrawals are currently equivalent to 0.12 Ether, or approximately $170.79.

“FTX’s net crypto asset holdings have decreased by 83% over the past two days, so they are struggling to process withdrawals,” Cryptoquant CEO and co-founder Ki Young Joo told TheLike. “For example, when their users exchange ETH for stablecoins and request withdrawals, FTX has to bring stablecoin liquidity to process withdrawals through markets or other exchanges.”

Xu noted that FTX stablecoin reserves have decreased by 93% over the past two weeks, and that it has injected USDC liquidity from the Alameda Research wallet. “This suspension of withdrawals appears to be a liquidity issue for user withdrawals.”

A spokesperson for FTX did not respond to TheLike’s request for comment.

Some people in the crypto neighborhood tweeted that they “successfully withdrawnEthereum and Bitcoin from FTX, while others responded that they were ready for hours to withdraw funds.

Tomorrow evening, FTX tweeted That its employees are processing a backlog of withdrawals and that “queues are shrinking and getting back to more reasonable levels; nodes and banks are catching up.”

Since then, as of the time of publication, FTX and its CEO, Sam Bankman-Fried, have not issued any statement regarding the pause.

As FTX is hotly passing through the world’s largest crypto alternative, Binance, its CEO Changpeng “CZ” Zhao tweeted that his option will gradually withdraw its billions of holdings in FTX’s native token, FTT.

On Monday, Banksman-Fried tried to calm the waters regarding FTX’s liquidity through a collection of tweets that did not directly respond to the liquidations of Zhao and Binance.

“A competitor is trying to go after us with false rumours,” Bankman-Fried noted. “FTX is fine. Asset is fine.”

Banksman-Fried noted that FTX has enough to cover all consumer holdings and does not spend money on consumer goods. he then tweeted He would “love” if Zhao and FTX could “work together for the ecosystem”.

FTT is currently buying and selling at $14.65, down about 35% information From CoinMarketCap.

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