Concerns about another "Three Arrows" event, but this time related to FTX and its hybrid investment fund/market maker Alameda Research, swept the market on Tuesday morning Asian time, sending FTX's exchange token FTT down nearly 20% .
Short interest in FTT continued to increase as open interest surged 8% in the past hour to a total of $215 million, according to CoinGlass.
The troubles with Sam Bankman-Fried’s FTX began when CoinDesk reported last week that a large portion of Alameda’s balance sheet was made up of FTT and Solana’s SOL tokens.
Since then, the market has become increasingly concerned about FTX’s liquidity. The exchange faced a massive outflow of stablecoins, moving $451 million from its main platform last week and $15 million from its U.S. subsidiary, according to Nansen data. Currently, FTX has a balance of $59.2 million in USDC and $28.5 million in USDT, and $8.6 million in BUSD. FTX US has $41M USDC, $12.8M USDT, $39M PAX and $11.3M BUSD available.
FTT is currently down 19% at $17.93. SOL is down 17% and Serum's SRM token is down 10%. The action also spread to Bitcoin (BTC), which fell 5.6% to $19,650. Meanwhile, Binance saw $411 million in stablecoin inflows last week, with a current balance of $26.7 billion.
While users reported some delays in fiat currency withdrawals, FTX said it was working on the backlog and was still processing it. FTX CEO Sam Bankman-Fried said on Twitter earlier Monday that the exchange was far from insolvent and was not at risk of halting withdrawals.
Binance CEO Changpeng Zhao has previously stated that he plans to liquidate any remaining FTT on Binance’s books, but on-chain data suggests that has yet to begin.
0 Comments