As the digital assets industry continues to deal with the controversy surrounding Sam Bankman-trading Fried’s firm Alameda Research’s balance sheet, there have been reports of a transfer of a large amount of stablecoins from Gate.io, Huobi, OKX, and KuCoin to the FTX hot wallet. This transfer was made in order to deal with withdrawals.
FTX is seeing a significant increase in the volume of exchange withdrawals. Approximately 292 million dollars’ worth of stablecoins have been removed from FTX in the last week. Because Alameda is such a significant market maker on FTX, it’s possible that traders are leaving the exchange because of concerns that there would be liquidity concerns.
Since Binance‘s CEO Changpeng “CZ” Zhao openly feuded with Alameda’s CEO Caroline Ellison over selling off Binance’s FTT holdings on Twitter, the price of FTX’s FTT exchange token, which makes up a major chunk of Alameda’s assets, is down 3% on day at the time of writing.
According to what Zhao had to say about it, “because to recent disclosures that have [came] to light,” they have made the decision to “liquidate all remaining FTT on our books.” Zhao also said that since Binance withdrew from FTX’s stock the previous year, the company has received stablecoins valued at $2.1 billion worth of BUSD and FTT.
Zhao said that the tokens will be sold by Binance in a manner that would have little effect on the market. This process might take many months.
The company’s stability may be in question, as it was reported last Wednesday that a financial study by Alameda Research stated that debt accounted for nearly 54% of revenues as of June 30, whereas a huge percentage of the firm’s profits are FTT.
