What happened to FTX and Binance?
Binance and FTX have sparked discussion in the crypto market recently. The cause was the revelation that Alameda Research’s balance sheet was filled with FTT tokens issued by FTX, which sparked concerns about FTX.
According to CoinDesk’s financial analysis of Alameda, Alameda’s balance sheet, its largest single asset and a large amount of collateral are FTX’s $FTT.
Later, Alameda CEO Caroline Ellison responded to recent rumors on social media that Alameda/FTX may be insolvent by saying that the Internet version’s balance sheet only lists a portion of Alameda’s assets. Alameda has more than $10 billion that it does not show on the balance sheet.
Caroline added that the Net Media balance sheet lists only a few of Alameda’s largest long positions, but that Alameda clearly has other hedges. Given the tightening of the crypto credit space this year, Alameda has now repaid most of its loans.
Binance founder CZ’s comments on the social media platform were followed by controversy. On the evening of November 6th he tweeted that he would liquidate the remaining FTT in his account within a few months. Moreover, CZ added, the sell-off had nothing to do with “targeting competitors.”
Regarding the “Binance Clearance FTT,” Alameda CEO Caroline Ellison said that Alameda is now willing to pay $22 if Binance founder CZ wants to minimize the impact of the clearance on the secondary market.
According to the data on the Tokenview, there was actually a Binance address 0xd9… d7d7 at 22:08:59 on November 5th transferred 22,999,999 FTTS (valued at approximately $580 million) to the FTX address 0x04… 8379. CZ tweeted on November 7 that the 22,999,999 FTT ($585 million) previously transferred to Binance was part of Binance’s (remaining FTT position on its books).
CZ continues to respond that the liquidation of FTT is only a post-exit risk management measure.
In response to a question from a Twitter user, CZ said Binance did not hold FTT until now because of a lockup period. Binance had been held voluntarily, removing any suspicion that we would attack a “competitor”. But there is a limit to how long you can hold it, not forever.
Rumours about Binance and FTX have been circulating since CZ decided to liquidate all remaining FTT on Binance’s books.
SBF’s response on social media has been remarkably calm. In response to its tweet: A bunch of baseless rumors have been circulating, FTX maintains audited finances, and while it sometimes slows things down on products, FTX is highly regulated. FTX has already processed billions of dollars in deposits/withdrawals today, and there are a lot of dollar Stablecoin conversions going on.
According to Tokenview data, as of press time, the 24-hour spot trading volume of FTX Token (FTT) has reached $1.668 billion, with FTT price down 7.03% in 24 hours and 11.01% in 7 days.
After CZ announced that it would “liquidate FTT”, FTT briefly fell as much as 10.9%.
lameda data: According to Tokenview data, Alameda has extracted more than 480 million USDC to FTX (0x2fa) from Circle (0x55f) in the past 5 days.
In addition, more than $100 million worth of tokens have been transferred from FTX to encrypted lending platform Nexo (0xb60). These included 56,432 ETH ($89.8 million) and stablecoins worth $13.9 million.
The data shows that there has been a lot of Stablecoin flow over the past week: Binance has seen the largest net inflow of Stablecoin at $410 million; With a net outflow of $450 million, FTX had the largest net outflow in Stablecoin.
Binance and FTX have gone from being close friends to fighting each other, and now Binance and FTX are competing in the crypto space.
In this neck-and-neck battle, the average user is more concerned about the future of Binance and FTX. No matter how much the two bicker, the crypto industry will continue to move forward driven by mutual interest.
