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.
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.
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.
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