WebsCrypto
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • Markets
  • NFTs
  • Blockchain
  • Business
  • DeFi
  • Regulation
  • Policy
Facebook Twitter LinkedIn Telegram
WebsCryptoWebsCrypto
Crypto Prices
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • Markets
  • NFTs
  • Blockchain
  • Business
  • DeFi
  • Regulation
  • Policy
WebsCrypto
WebsCrypto—Business—Analysis: Alameda Was on the Verge of Collapse in Q2
Business

Analysis: Alameda Was on the Verge of Collapse in Q2

By Simon LawsonNovember 9, 20222 Mins Read
Analysis: Alameda Was on the Verge of Collapse in Q2
Facebook Twitter Telegram LinkedIn Reddit Email

According to Lucas Nuzzi, head of research at CoinMetrics, there is evidence that FTX may have provided a massive bailout for Alameda in the second quarter, and that’s what’s bothering them now.

According to data analysis, Alameda came to the brink of collapse with Three Arrows Capital and others in the second quarter of this year. It survived because it used the 17.2 million FTT guaranteed to vest after 4 months as collateral to obtain from FTX Funds, once vested, all tokens are returned as repayment.

The FTT ICO contracts are auto-vesting, and if FTX lets Alameda implode in May, their collapse will ensure that all FTT tokens subsequently vested in September are liquidated. This is going to be bad for FTX, so they have to figure out a way to avoid it.

Alameda and FTX actually put all their chips on the table in the second quarter and used the money to bail out other companies, which solidified FTX’s image as a solvent and responsible institution and helped FTT’s price rise.

Related:  Crypto Community Member Allegedly Spots SBF at JFK Airport Lounge Just Days After Release

A bailout for Alameda could weaken FTX’s balance sheet, making it no longer solvent, which is why Alameda has gone to great lengths to protect the price of FTT.

Nuzzi also speculated that it is possible that people at Binance were aware of this arrangement between FTX and Alameda. As large holders of FTT, they may start to deliberately disrupt this market in order to force FTX to face a liquidity crunch.

DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
Binance Crypto Cryptocurrency FTX Market
Related News

Venezuelan Regulators Shut Down Cryptocurrency Exchanges, Mining Farms

Dogecoin Foundation Releases Major Update to Libdogecoin Toolkit, Supports BIP-39 Seeds and QR Code Generation

Billionaire Tim Draper: Companies Should Hold Bitcoin After SVB Bankruptcy

Circle CEO Warns of Market Anxiety Over ‘Aggressive Regulatory Action’ in US

Mysten Labs Buys Back Equity and Token Warrants from FTX Assets for $96M

Report: Metaverse’s NFT transaction volume reached US$311 million in the first quarter

The Latest
News March 26, 2023
Venezuelan Regulators Shut Down Cryptocurrency Exchanges, Mining Farms
News March 26, 2023
The Y00ts NFT Project Will Be Migrated to Polygon on March 27
News March 26, 2023
Dogecoin Foundation Releases Major Update to Libdogecoin Toolkit, Supports BIP-39 Seeds and QR Code Generation
News March 26, 2023
Billionaire Tim Draper: Companies Should Hold Bitcoin After SVB Bankruptcy
Markets March 24, 2023
Circle CEO Warns of Market Anxiety Over ‘Aggressive Regulatory Action’ in US
Block 3000

WebsCrypto contains crypto news about cryptocurrencies, bitcoin, ethereum, altcoins and more.

Facebook Twitter Instagram LinkedIn Telegram RSS
News
  • Markets
  • Business
Information
  • Opinions
  • Guides
  • Press Release
  • Sponsored
Services
  • About Us
  • Contact Us
  • Advertise
© 2023 WebsCrypto.
  • Privacy Policy
  • Terms of Service

Type above and press Enter to search. Press Esc to cancel.