FTX-Alameda Crisis: These Crypto To Be Dumped Soon After Solana (SOL)
Sam Bankman-Fried’s crypto exchange FTX and trading firm Alameda Research are under a severe liquidity crunch. Crypto exchange Binance is all set to acquire FTX as CEO Chanpeng “CZ” Zhao signed a non-binding LOI to help with the liquidity crunch. Meanwhile, Alameda is dumping Solana (SOL) tokens to contain the fall of FTX Token (FTT). On-chain data indicates Alameda will be dumping many tokens including Polygon’s MATIC.
Alameda Dumps MATIC After Solana (SOL)
FTX subsidiary Alameda Research started dumping Solana (SOL) tokens after Binance CEO “CZ” announced selling all FTT holdings in the next few months. The move triggered a massive liquidity crunch on FTX as traders started selling FTT holdings.
Alameda and other subsidiaries of FTX started transferring Ethereum (ETH) and stablecoins to the crypto exchange as the ETH reserve falls to its lowest levels since November 2021. Several users reported pending Bitcoin withdrawals for 5-10 hours. FTT token also slumped 20% amid a market-wide selloff.
Alameda started selling Solana (SOL) tokens to prevent further fall in FTT token price. Sam Bankman-Fried had $1.2 billion worth of SOL tokens via Alameda, now it’s almost $500 million. SOL price tumbled over 35% in the last 24 hours, making a low of $16.47. The firm will dump more tokens as 47.28 million SOL tokens to be unlocked in a day, as per Solana Compass.
The crypto trading firm has transferred 2.97 million MATIC tokens worth 2.9 million to Binance. Alameda may also dump more MATIC tokens. Crypto analysts believe the MATIC price could drop back to the $0.60 support level. Traders need to keep an eye on MATIC price as Alameda’s dump may trigger selling similar to Solana.
Alameda has assets worth $150.53 million in wallets including stablecoins, ETH, BIT, and FTT tokens. It includes significant amounts of SRM, OP, MATIC, MASK, SAND, and FTM tokens. Thus, these tokens are at risk of dump by Alameda.
MATIC Price Falls Below $1
Polygon’s MATIC price fell below $1 due to a market-wide selloff. The MATIC price is trading at $0.91, down over 21% in the last 24 hours. The 24-hour low and high are $0.8837 and $1.23, respectively.
Solana has become volatile as the price bounced over 10% in an hour. The SOL price is trading at $19.44.
- Expert Explains Pi Network–Sign Meeting, Says It Could Trigger Binance Listing
- Is Trump Family, Mr. Beast Buying ASTER Token? Rumors Gain Strength
- Solana ETF Update: Grayscale, Fidelity, Others Files S-1 With Staking, Approval Expected in Two Weeks
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
