Coin Metrics called the possible cause of FTX crisis
In the second quarter of 2022, the FTX cryptocurrency exchange could provide “major financial assistance” by Alameda Research, which ultimately led to serious consequences. This conclusion was reached by the head of the department R&D in Coin Metrics Lucas NUCSI.
1/ I Found Evidence that FTX Might Have Provided A Massive Bailout for Alameda in Q2 Which now Came Back to Haunt them.
40 Days AGO, 173 Million FTT TOKENS WORTH OVER 4B USD Became Active On-Chain.
“40 days ago 173 million FTT for more than $ 4 billion became active. Rabbits appeared, ”he wrote.
According to the expert, on September 28, the largest daily FTX UTILITY-TOKEN-TOKENTROM was recorded-in the amount of over $ 8.6 billion. After the analysis, NUCSI found out that the recipient of FTT was $ 4.19 billion associated with the Alameda Research exchange.
5/ ALAMEDAH Sent that * Entire * Balance to the Address of the Deployer (Creator) of the FTT ERC20, WHICH CONTROLLLED BY SOMEONE at FTX.
In Other Words, Alameda Auto-Asted $ 4.19 Billion Dollars Worth of FTTT JUST to SEND IMMEDIATELY BACK To FTX.https: // t.Co/TTUF3OGO9F
– lucas nuzzi (@lucasnuzzi) november 8, 2022
“Alameda sent the“ whole ”balance to the address of the developer (creator) of the FTT [standard] ERC20, which is controlled by someone in FTX. In other words, Alameda automatically allocated FTT in the amount of $ 4.19 billion only in order to immediately send them back to FTX, ”the researcher noted.
In his opinion, the starting point was the problems of the hedge fund Three Arrows Capital (3AC) and the Terra ecosystem preceding this collapse. Alameda “survived” thanks to funding from FTX, using 172 million FTT as a “pledge”, NUCSI suggested.
“After the transfer, all tokens were sent back as repayment,” the thread says.
NUCSI added that the potential collapse of AlaMeda in May would lead to the elimination of all FTT provided in September. However, the script implemented in the second quarter strengthened the image of the FTX as a solvent and responsible organization, which contributed to the increase in token price, the expert noted.
“There is a chance that people from Binance knew about this agreement between FTX and AlaMeda. Have an opportunity. Like large ftt holders, they could begin to deliberately drown this market to force FTX to face a liquidity crisis, ”Nutzci admitted.
The expert emphasized that the published thread is his personal view of what is happening, based on onchain research.
Recall, on November 6, CEO Binance Chanpen Zhao announced the company’s desire to get rid of ftt. Assets together with BUSD in a total of ~ $ 2.1 billion steel by the company’s output from the portfolio investment in the platform of Sam Bankman-Fried.
Then Zhao noted that the decision was not directed against the competitor, but became the result of “recent revelations”. Presumably, he had in mind the investigation of Coindesk, which revealed the details of the balance of the company Alameda Research, closely related to FTX.
On November 8, FTT quotes fell by https://gagarin.news/news/an-interview-with-crypto-expert-dr-smartcontract/ almost 30% amid concern about the financial stability of the platform. On the same day, Bankman-Fried and Zhao announced strategic partnership in order to resolve the liquidity crisis. It also implies the possible absorption of the FTX exchange of Binance.
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