FTX Token Plummets as Market Fears Possible Alameda Contagion

Fears over another ‘Three Arrows’ occasion, however this time connected to FTX and its hybrid financial investment fund/market maker Alameda Research, grasped the marketplaces Tuesday early morning Asia time, sending out FTX’s exchange token FTT down almost 20%.

Data from CoinGlass reveals that there continues to be developing brief interest in FTT as open interest has actually risen 8% throughout the last hour to an overall of $215 million.

The problem for Sam Bankman-Fried’s FTX began after CoinDesk reported recently that a significant part of Alameda’s balance sheet was comprised of FTT and Solana’s SOL token.

Since then, the marketplace has actually grown worried about FTX’s liquidity. The exchange has actually dealt with a huge stablecoin exodus, with $451 million being dispatched its primary platform throughout the recently, and $15 million being pulled from its U.S. subsidiary, according to Nansen information Presently, FTX has a balance of $592 million USDC and $285 million USDT, together with $8.6 million BUSD. FTX United States has $41 million USDC, $128 million USDT, $39 million PAX, and $113 million BUSD offered.

Interest rates on FTX’s margin loaning platform have actually leapt, with the exchange now paying 10% for USDT compared to a previous loaning rate of 5%.

Meanwhile, Binance has actually seen an inflow of $411 million in stablecoins over the recently, with a present balance of $267 billion.

While users have actually reported some hold-ups on fiat currency withdrawals, FTX states that it is overcoming the stockpile and they are still being processed. FTX CEO Sam Bankman-Fried required to Twitter early Monday to state that the exchange was far from insolvent and there is no danger of withdrawals being stopped.

Binance CEO Changpeng Zhao has actually formerly stated that he prepares to liquidate any staying FTT on Binance’s books, however on chain information recommends that this hasn’t yet started.

FTT is presently trading down 19% at $1793 SOL is lower by 17% and Serum’s SRM token is down 10%. The action is spilling over into bitcoin ( BTC) also, which is down 5.6% to $19,650

UPDATE (Nov. 8, 04: 15 UTC): Updated with extra context and details.