Could FTX Failing To Resist The Whale FTT Selloff?
Immediately after the Binance CEO confirmed the sale of 23 million FTT for $580 million, the price of FTT dropped from $25.4 to $22.82, which is a 10% drop. Will FTX be able to withstand the massive sell-off?
According to Lookonchain analyzed on Twitter that from an FTT token economics perspective, the total current supply of FTT is 328,895,112 and the circulating supply is 133,618,094, but the top 50 holders hold a total 328,895,112 FTT.
322.72 million FTT (worth about 7.44 billion USD), accounting for 98.12% of total supply, with high concentration, of which Alameda & FTX hold a total of 245 million FTT (about 5 65 billion USD), accounting for the total supply of 74.51% of the quantity. Binance previously held 24.35 million FTT (about $56 million), or 7.4% of the total supply.
By analyzing addresses with a net worth of more than $10,000, Alameda found that its total net worth is only $180 million, of which stablecoin assets are less than $60 million.
While analysis of two FTX wallets found that its assets are around $2.71 billion (of which there is also nearly $1.2 billion in FTT), stablecoin assets are around $240 million. As such, FTX and Alameda currently hold around $300 million in stablecoin assets.
As a result, FTX and Alameda currently hold about $300 million in stable currency assets, which is not enough to buy 60% of the 23 million FTT transferred from this giant whale address. Meaning that once the giant whale sells FTT, it will cause an accident.
As mentioned in a previous Coincu News article, Changpeng Zhao said that he transferred about 23 million FTT ($585 million) to Binance on November 5, he also shared that the FTT sale will take place from word to avoid pressure on the market.
The cause of this unexpected “discharge” was implicitly accused by CZ of FTX of “Unfair-Play” behind Binance’s back.
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