{"id":11492,"date":"2022-11-08T08:52:49","date_gmt":"2022-11-08T12:52:49","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=11492"},"modified":"2022-11-08T08:52:49","modified_gmt":"2022-11-08T12:52:49","slug":"the-binance-vs-ftx-war-here-are-the-most-recent-stats-on-chain-data","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/11\/08\/the-binance-vs-ftx-war-here-are-the-most-recent-stats-on-chain-data\/","title":{"rendered":"The Binance Vs. FTX War: Here Are The Most Recent Stats & On-Chain Data"},"content":{"rendered":"

Is this the beginning of the end for FTX and Alameda Research? Or will both organizations come out stronger on the other side? As NewsBTC reported<\/a>, Binance\u2019s CZ smelled blood in the water and announced that his exchange was selling their FTT reserves. That created a sort of a bank-run that left FTX in a dangerous position. Are both of the Sam Bankman-Fried-led organizations\u2019 destinies tied to the FTT token? Or will they be fine even if it falls?<\/p>\n

In the most recent Bitcoin Magazine Pro report<\/a>, they describe the current situation as, \u201ca wave of panic taking shape that questions the solvency of both FTX and Alameda Research. As a result, we\u2019ve seen nearly $1 billion in assets and token values fly out of known FTX and Alameda addresses over the last week.\u201d Not only that, both FTT and BNB are falling<\/a>. And Alameda and FTX are working overtime to keep FTT over $22.<\/p>\n

We\u2019ll cover all of that and more, but first, let\u2019s go to another BM Pro report<\/a> in which they described the situation that led to all of this. A document detailing Alameda Research\u2019s reserves leaked and the whole world learned that the firm held approximately 90% of the total FTT token supply. Their sister company, FTX, issues that coin. And that\u2019s problematic.<\/p>\n

\u201cIt\u2019s reported Alameda was holding $5.82 billion of FTT on June 30th, while the market cap of FTT at the time of the report was $4.2 billion. This is a result of some of their asset allocation being held in locked altcoins, which, similar to VC investments and employee stock compensation programs, has a locked\/vesting period, only this time it\u2019s using smart contracts. It should be noted that Alameda apparently applied a 50% haircut to all \u201clocked\u201d assets, but one could make the case that this is still generous accounting.\u201d<\/p>\n

There are really interesting caveats in there.<\/p>\n\n

FTT price chart on FTX | Source: FTT\/USD on TradingView.com<\/a><\/p>\n

FTX Is Down And Binance Is Up<\/h2>\n

The bank run seems to be on. Wallets associated with FTX are moving funds like there\u2019s no tomorrow. The exchange\u2019s stablecoin balances \u201chave been depleting at a rapid pace as customers move to get funds off the platform.\u201d And that\u2019s not their only worry, they also have to defend the $22 floor for FTT, but we\u2019ll get to that. This is a zero-sum game, so someone has to be winning while FTX is losing. Back to the latest BM Pro<\/a> report:<\/p>\n

\u201cIt\u2019s a stark difference to see $451 million in stablecoins flow out of FTX <\/a>over the last 7 days versus the $411 million that have flowed into Binance. That tells anyone in the market that the exchange giant (Binance), which already has approximately 60% of the volume in the entire space across both spot and derivatives markets, is out for blood and stands to gain during this FTX situation.\u201d<\/p>\n

This all might seem like fun and games between two giants, but the reality is this: if FTX falls, the whole crypto market will tumble. And the contagion effect would probably be tremendous and take several companies and projects down with it. \u201cThere\u2019s a broader risk to the market here as we see Alameda unwind many other positions across tokens and bitcoin that will be used to raise additional capital,\u201d BM Pro wrote, \u201cwe\u2019re just in the beginning stages on what may play out here.<\/p>\n

FTX stablecoin balance 7d: -$451mBinance stablecoin balance 7d: +$411m<\/p>\n

per @nansen_ai<\/a> pic.twitter.com\/cwlg29hugz<\/a><\/p>\n

\u2014 Alex Thorn (@intangiblecoins) November 7, 2022<\/a><\/p>\n\n

The $22 Level<\/h2>\n

Why is team Sam Bankman-Fried so determined to defend FTT\u2019s $22 level? Alameda Research\u2019s CEO, Caroline Ellison offered CZ<\/a>, \u201cif you\u2019re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!\u201d There\u2019s that number again. Why are they so obsessed with it? According to BM Pro:\u00a0<\/p>\n

\u201cAlameda would likely not have such a vested interest in defending this level if it was not leveraged. Otherwise, they would let the market fall as much as it wants and simply acquire FTT at a lower price.\u201d<\/p>\n

Is that undeniable proof that FTX and Alameda are leveraged and their destinies are tied to FTT? Not really. It suggests it, though. \u201cThe exchange rate differential between the FTT price on FTX vs. Binance has pushed to historic highs as Alameda and crew attempt to defend their token. Meanwhile, CZ and an army of speculators have begun to sell and go short FTT.\u201d\u00a0<\/p>\n

Feels like I’m watching an emerging market central bank attempting to defend its currency against speculators right now. $FTT<\/a> pic.twitter.com\/hQc0Vh0ARe<\/a><\/p>\n

\u2014 Dylan LeClair (@DylanLeClair_) November 7, 2022<\/a><\/p>\n\n

We might be witnessing \u201ca classic speculative attack unfold,\u201d says BM Pro. However, they feel it\u2019s even deeper. \u201cThere is a much more important battle going on, and the FTT exchange rate is a matter of solvency for Alameda.\u201d According to analyst Dylan LeClair, the whole situation \u201cfeels like I\u2019m watching an emerging market central bank attempting to defend its currency against speculators.\u201d<\/p>\n

The question is, can they?<\/p>\n

Featured Image by DeSa81<\/a> from Pixabay<\/a> | Charts by TradingView<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Is this the beginning of the end for FTX and Alameda Research? Or will both organizations come out stronger on the other side? As NewsBTC reported<\/a>, Binance\u2019s CZ smelled blood in the water and announced that his exchange was selling their FTT reserves. That created a sort of a bank-run that left FTX in a dangerous position. Are both of the Sam Bankman-Fried-led organizations\u2019 destinies tied to the FTT token? Or will they be fine even if it falls?<\/p>\n

In the most recent Bitcoin Magazine Pro report<\/a>, they describe the current situation as, \u201ca wave of panic taking shape that questions the solvency of both FTX and Alameda Research. As a result, we\u2019ve seen nearly $1 billion in assets and token values fly out of known FTX and Alameda addresses over the last week.\u201d Not only that, both FTT and BNB are falling<\/a>. And Alameda and FTX are working overtime to keep FTT over $22.<\/p>\n

We\u2019ll cover all of that and more, but first, let\u2019s go to another BM Pro report<\/a> in which they described the situation that led to all of this. A document detailing Alameda Research\u2019s reserves leaked and the whole world learned that the firm held approximately 90% of the total FTT token supply. Their sister company, FTX, issues that coin. And that\u2019s problematic.<\/p>\n

\u201cIt\u2019s reported Alameda was holding $5.82 billion of FTT on June 30th, while the market cap of FTT at the time of the report was $4.2 billion. This is a result of some of their asset allocation being held in locked altcoins, which, similar to VC investments and employee stock compensation programs, has a locked\/vesting period, only this time it\u2019s using smart contracts. It should be noted that Alameda apparently applied a 50% haircut to all \u201clocked\u201d assets, but one could make the case that this is still generous accounting.\u201d<\/p>\n

There are really interesting caveats in there.<\/p>\n

FTT price chart on FTX | Source: FTT\/USD on TradingView.com<\/a><\/p>\n

FTX Is Down And Binance Is Up<\/h2>\n

The bank run seems to be on. Wallets associated with FTX are moving funds like there\u2019s no tomorrow. The exchange\u2019s stablecoin balances \u201chave been depleting at a rapid pace as customers move to get funds off the platform.\u201d And that\u2019s not their only worry, they also have to defend the $22 floor for FTT, but we\u2019ll get to that. This is a zero-sum game, so someone has to be winning while FTX is losing. Back to the latest BM Pro<\/a> report:<\/p>\n

\u201cIt\u2019s a stark difference to see $451 million in stablecoins flow out of FTX <\/a>over the last 7 days versus the $411 million that have flowed into Binance. That tells anyone in the market that the exchange giant (Binance), which already has approximately 60% of the volume in the entire space across both spot and derivatives markets, is out for blood and stands to gain during this FTX situation.\u201d<\/p>\n

This all might seem like fun and games between two giants, but the reality is this: if FTX falls, the whole crypto market will tumble. And the contagion effect would probably be tremendous and take several companies and projects down with it. \u201cThere\u2019s a broader risk to the market here as we see Alameda unwind many other positions across tokens and bitcoin that will be used to raise additional capital,\u201d BM Pro wrote, \u201cwe\u2019re just in the beginning stages on what may play out here.<\/p>\n

FTX stablecoin balance 7d: -$451mBinance stablecoin balance 7d: +$411m<\/p>\n

per @nansen_ai<\/a> pic.twitter.com\/cwlg29hugz<\/a><\/p>\n

\u2014 Alex Thorn (@intangiblecoins) November 7, 2022<\/a><\/p>\n

The $22 Level<\/h2>\n

Why is team Sam Bankman-Fried so determined to defend FTT\u2019s $22 level? Alameda Research\u2019s CEO, Caroline Ellison offered CZ<\/a>, \u201cif you\u2019re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!\u201d There\u2019s that number again. Why are they so obsessed with it? According to BM Pro:\u00a0<\/p>\n

\u201cAlameda would likely not have such a vested interest in defending this level if it was not leveraged. Otherwise, they would let the market fall as much as it wants and simply acquire FTT at a lower price.\u201d<\/p>\n

Is that undeniable proof that FTX and Alameda are leveraged and their destinies are tied to FTT? Not really. It suggests it, though. \u201cThe exchange rate differential between the FTT price on FTX vs. Binance has pushed to historic highs as Alameda and crew attempt to defend their token. Meanwhile, CZ and an army of speculators have begun to sell and go short FTT.\u201d\u00a0<\/p>\n

Feels like I’m watching an emerging market central bank attempting to defend its currency against speculators right now. $FTT<\/a> pic.twitter.com\/hQc0Vh0ARe<\/a><\/p>\n

\u2014 Dylan LeClair (@DylanLeClair_) November 7, 2022<\/a><\/p>\n

We might be witnessing \u201ca classic speculative attack unfold,\u201d says BM Pro. However, they feel it\u2019s even deeper. \u201cThere is a much more important battle going on, and the FTT exchange rate is a matter of solvency for Alameda.\u201d According to analyst Dylan LeClair, the whole situation \u201cfeels like I\u2019m watching an emerging market central bank attempting to defend its currency against speculators.\u201d<\/p>\n

The question is, can they?<\/p>\n

Featured Image by DeSa81<\/a> from Pixabay<\/a> | Charts by TradingView<\/a><\/p>\n

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