Investors Withdraw Millions From FTX As Binance Begins Liquidating FTT Token (decrypt.co) 26
Hot on the heels of Binance CEO Changpeng "CZ" Zhao declaring that Binance is liquidating its stash of FTX's native exchange token FTT, mass withdrawals from FTX have accelerated, with weekly stablecoin outflows from FTX reaching a whopping $451 million, according to Nansen data. Conversely, Binance has seen net inflows of more than $411 million over the same period. Decrypt reports: This mass exiting of tokens from the FTX exchange comes amid reports that Alameda Research, the trading firm founded by Sam Bankman-Fried, held as much as $5.8 billion in the exchange's native FTT token -- $3.66 billion in "unlocked FTT" and $2.16 billion in "FTT collateral." Given such large exposure to FTT, some have speculated that this could mean a liquidity crisis for Alameda should the markets move against FTT, dropping the token's value.
Shortly after these reports hit the market, CZ took to Twitter to announce that he would be offloading the firm's FTT holdings. Binance received funds in FTT as part of its exit last year from an early equity position in FTX it had since 2019. "Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books," CZ tweeted on Sunday. CZ said that he "won't support people who lobby against other industry players behind their backs."
The FTX boss also cited Alameda Research CEO Caroline Ellison, who said, "that specific balance sheet is for a subset of our corporate entities." Ellison also claimed that the firm has over $10 billion of assets "that aren't reflected there." SBF went on to thank "those who stay level-headed during crazy times," adding that withdrawals and deposits at FTX were working fine and the exchange had already processed "billions of dollars" worth of transactions. As for Binance's decision to dump its FTT holdings, Ellison offered to buy the exchange's remaining FTT holdings over-the-counter (OTC) for $22 if CZ was looking to "minimize the market impact" of the sudden move. UPDATE 11/7/22, UTC 04:33: "Fears over another 'Three Arrows' event, but this time tied to FTX and its hybrid investment fund/market maker Alameda Research, gripped the markets Tuesday morning Asia time, sending FTX's exchange token FTT down nearly 20%," reports CoinDesk in an updated article. "Data from CoinGlass shows that there continues to be building short interest in FTT as open interest has surged 8% during the last hour to a total of $215 million."
Shortly after these reports hit the market, CZ took to Twitter to announce that he would be offloading the firm's FTT holdings. Binance received funds in FTT as part of its exit last year from an early equity position in FTX it had since 2019. "Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books," CZ tweeted on Sunday. CZ said that he "won't support people who lobby against other industry players behind their backs."
The FTX boss also cited Alameda Research CEO Caroline Ellison, who said, "that specific balance sheet is for a subset of our corporate entities." Ellison also claimed that the firm has over $10 billion of assets "that aren't reflected there." SBF went on to thank "those who stay level-headed during crazy times," adding that withdrawals and deposits at FTX were working fine and the exchange had already processed "billions of dollars" worth of transactions. As for Binance's decision to dump its FTT holdings, Ellison offered to buy the exchange's remaining FTT holdings over-the-counter (OTC) for $22 if CZ was looking to "minimize the market impact" of the sudden move. UPDATE 11/7/22, UTC 04:33: "Fears over another 'Three Arrows' event, but this time tied to FTX and its hybrid investment fund/market maker Alameda Research, gripped the markets Tuesday morning Asia time, sending FTX's exchange token FTT down nearly 20%," reports CoinDesk in an updated article. "Data from CoinGlass shows that there continues to be building short interest in FTT as open interest has surged 8% during the last hour to a total of $215 million."
Here's what I understand... (Score:5, Funny)
The Fairy Coin Bank is possibly having issues so the Orcs are moving their Magic Money to the Elven Repository and changing them for Dwarven Dollars, which is all causing the Kobolds to also pull their Magic Money out and change it for other coins, including Halfling Hash and a steaming pile of bullshit.
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Quick: Take a short position on Dwarven, snatch as much Hash as you can muster, &*^# the Kobolds 'cause they're idiots. Sit tight on your silver pieces--surely they'll hit 1980 prices again soon and you can finally liquidate in the black.
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Thanks for this. I couldn't make heads nor tails of the article.
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Re:Here's what I understand... (Score:4, Insightful)
gamblers learn something
You may want to take that back :P
The gamblers have only "learnt" that it didn't work this time round, again.
The NEXT time will definitely work! Honest! In fact, next time, we'll try even LESS regulation! You see, it doesn't matter what the regulation is - man-made law, physics, maths... The problem is that it exists! Next time, we're going to ignore thermodynamics!
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Re: Here's what I understand... (Score:2)
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i wondered why halflings always acted so cool. despite being, you know, halflings.
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It used to be /. was a place for neophytes. What happened?
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Glad I paid off my Mordorcard.
Phrasing (Score:2)
with weekly stablecoin outflows from FTX reaching a whopping $451 million
Huh, sure doens't sound very stable to me!
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Wow, do you understand any of this?
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Yes out for a while (Score:3, Informative)
Didn't you get out of crypto?
Damn straight! Not going back in until all the nonsense (like this exact story) is unwound! Not even close to being willing to go back in yet.
Other people recommend just staying in, or even buying in... but until I have a real idea of what the end game for crypto looks like I just can't bring myself to hold any of it.
My hat is off to those of you who have had Ethereum for a while, it seems like you are actually kind of OK. Even with this drop ETH is still up fairly well. But
Re: Phrasing (Score:2)
Bankman-Fried (Score:2)
Another week, another shitcoin goes splat (Score:4, Insightful)
Wait, so now we've reached the stage where the shitcoin fraud enthusiasts are fucking each other over? I guess they ran out of rubes to steal from, so now they start liquidating the weakest fraudsters instead?
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Crypto bank run (Score:3)
Or shall we call this "Crypto Run", since crypto aint banks, right?
Algorithmic trading (Score:4, Interesting)
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It reminds me of check kiting. Write a check at bank "B" from bank "A", deposit it. Run to bank "C", deposit a check with funds from "A" and "B". Repeat. By the time stuff clears and the checks are bouncing, there is enough cash by the time it hit bank "X" or "Y" that one could easily run off and retire. However, banks are smart enough to not let this happen and either check funds, or require a hold until stuff goes through.
Looks similar to me. Run to one cryptocurrency exchange, pay with another and
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And as long as the numbers always go up you look like a genius!