FTX Faces Withdrawal Pressure as FTT and Solana Ecosystem Tokens Plummet
The crypto market has kicked off the week with high drama between Sam Bankman-Fried of FTX and CZ of Binance. While the outcome remains uncertain, FTT and Solana ecosystem tokens are experiencing significant declines.
FTX Faces Withdrawal Pressure, FTT and Solana Tokens Suffer
Following CZ's public acknowledgment that Binance is offloading FTT, the price of FTX's native token has dropped by 5% in the past 24 hours.
1-Hour Chart of FTT/USDT on Binance as of 02:50 PM on 07/11/2022
However, CEO Caroline Ellison of Alameda Research has claimed she will "buy up all FTT at $22," suggesting a strong support level despite the price fluctuations.
Nonetheless, on-chain data presents a less optimistic picture. The number of FTT tokens being sent to the FTX exchange has surged, indicating traders are moving their coins to the platform to sell off their holdings.
FTT Balance on FTX Spikes. Source: Glassnode
Additionally, as reported by Coin68, FTX is facing a "bank run" with users rapidly withdrawing funds over fears of severe liquidity issues. Over the past weekend alone, more than $451 million in stablecoins were withdrawn from FTX.
Stablecoin Inflows and Outflows on Exchanges. Source: Nansen
So, where is FTX getting the liquidity to maintain its platform and support the price of FTT? There is a prevailing conspiracy theory suggesting that “someone” might be dumping SOL.
Conspiracy Theory: SOL Dumping
Not only FTT, but Solana ecosystem tokens are also experiencing sharp declines. In the past 24 hours, SOL’s price has dropped by 14%, hovering around $31.
1-Hour Chart of SOL/USDT on Binance as of 02:50 PM on 07/11/2022
Serum (SRM) has also seen a decrease of over 7%, trading around $0.75.
1-Hour Chart of SRM/USDT on Binance as of 02:50 PM on 07/11/2022
After Alameda Research's "portfolio" was revealed to consist largely of illiquid Solana tokens, there are growing concerns that Sam Bankman-Fried might be liquidating these assets to support the price of FTT.
So Alameda is obviously full-on dumping SOL to support FTT price at $22?
— kamikaz ΞTH ?? (@kamikaz_ETH) November 7, 2022
Do you believe in this conspiracy theory?
