Here’s the rundown on the Binance and FTX fiasco

biggest crypto Alternatives by volume (Binance) and the third largest crypto alternative by volume (FTX) suffered in the present day after Binance CEO Changpeng “CZ” Zhao. tweeted That his option would be to gradually withdraw billions of his holdings in FTX’s native token, FTT, “due to recent revelations.”

But first, let’s take just a few steps again.

Concerns grew over FTX’s liquidity after Thursday CoinDesk. report from In relation to the stability sheet of Alameda Research, a crypto buying and selling agency run by FTX CEO Sam Bankman-Fried. CoinDesk reported that Alameda had $14.6 billion in assets as of June 30, with $8 billion in liabilities.

The report confirmed that Alameda’s biggest assets were approximately $3.66 billion in “unlocked FTT” and $2.16 billion in “FTT collateral.” (FTT is the token behind FTX.) This means that $5.82 billion in FTT, which Almeida owns, equates to 193% of the entire recognized FTT market cap, which is roughly $3 billion, corresponding to CoinMarketCap. information,

“The issue is that Alameda cannot sell even a small amount of its FTT holdings without affecting the price,” Marcus Sotirio, an analyst at publicly listed digital asset dealer GlobalBlocks, said in a notice. “Data from Cryptoquant […] Tells us that there are only 200-300 active addresses trading the FTT token, which is very small compared to many other large caps. Therefore, large sell orders being liquidated will drive down the FTT price.

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