NewsletterFTX’s Ethereum (ETH) Reserves Collapses Amid Liquidity Issues
Problems for crypto exchange FTX continue to pile up as Binance liquidates its FTT holdings and processing Bitcoin and stablecoins transfers suffer delays. In addition, Ethereum reserves on the crypto exchanges have dropped to a record low. FTX and founder Sam Bankman-Fried try to resolve issues and bring down FUD.
Meanwhile, FTX Token (FTT) price fell over 10% in the last 24 hours. The 24-hour low and high for FTT are $21.73 and $24.83, respectively.
FTX’s Ethereum Reserves Plunges Amid Liquidity Issues
According to CryptoQuant data, Ethereum (ETH) reserves of crypto exchange FTX fell nearly 300K in the past two days. Currently, the ETH reserves of FTX are 108,246.43. It is one of the massive falls since November 2020.
Meanwhile, FTX working to increase its Ethereum reserves through subsidiaries and other crypto exchanges. According to Nansen data, SBF-owned Alameda transferred 26,600 ETH to FTX in the past 24 hours, the remaining ETH balance on Alameda is 9,325 ETH. Alameda has also sent large amounts of stablecoins from other crypto exchanges to FTX hot wallet.
PeckShieldAlert data revealed that FTX removed liquidity of 1,985 ETH from Gearbox Protocol. Also, another SBF firm Blockfolio has transferred 13,555 ETH to FTX.
Moreover, FTX is facing difficulty processing Bitcoin withdrawals as the node is throughput limited. Users complain of transactions pending for nearly 5-10 hours. Stablecoins creations and redemptions have also slowed from FTX. The crypto exchange blamed banks for the slowdown in stablecoins creations and redemptions. It said wire transfers clear after banks open on Monday.
Binance liquidating their FTT holdings resulted in FUD, driving a significant impact on the crypto market.
FTT Tokens Plunges 10%
Binance CEO “CZ” announcing plans to dump all FTX Token (FTT) holdings over the next few months, caused the FTT token price to plunge over 10% in the last 24 hours.
Volatility increased on the FTT token as the price continues to show sharp fluctuations. At the time of writing, FTT price trades at $22.48, recovering some earlier losses. The token fell to a low of $21.73.
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