What's Going on with FTX?
Introduction
FTX:
FTX exchange is a centralized cryptocurrency exchange that is most popular because of leveraged trading. Founded in 2018, FTX offers a wide range of trading products including derivatives, options, volatility products, and leveraged tokens. It also provides various cryptocurrencies for trading, including BTC/USDT, ETH/USDT, XRP/USDT, and its native token FTT/USDT. FTX is based in the Bahamas and does not serve US residents who can trade on FTX US instead. FTX and FTX US have overlapping management teams but separate capital structures.
Methodology
Following the news that has been published in the past few days about Safi FTX, the crypto market has suffered a severe shock and the price of most cryptocurrencies has decreased sharply. For this reason, in this dashboard, we will examine the behavior of the wallets related to the FTX exchange, as well as the effects of published news and their verification.
First, the inflows and outflows of this exchange during the last 10 days are examined, then the destination of the cash flow out of this exchange is followed. In the third part, we will review the token of this exchange, the FTT token, and we will review the swap volume of this token in the last 10 days, as well as the assets to which this token has been swapped.
On the other hand, we know that this exchange has received a large amount of SOL as a loan by pledging its token, and the negative news surrounding this exchange can have a significant effect on the behavior of users in the SOL ecosystem such as the staking process.
Key Insights: Inflow
- The number of incoming transactions to this exchange has not changed significantly in the past 10 days, but the volume of incoming transactions has gradually increased, so that on November 7, nearly $1.4B entered this exchange, and the average of each transaction has grown significantly.
- It seems that the whales have done these transactions.
- The highest volume of inflow was related to the USDC token with an input volume of $3.075B.
- The USDT token is in second place with a volume of $1.275B, and the token of this exchange(FTT) is in third place with a volume of $1.261B.
Key Insights: Outflow
- The number of outgoing transactions from this exchange has changed dramatically over the past 10 days, and the volume of outgoing transactions has gradually increased, so that on November 7, nearly $1.41B was withdrawn from this exchange.
- The highest output volume from the exchange was related to the USDC token with a volume of $3.22B.
- The exchange's token(FTT) is in second place with a volume of $1.439B, and the USDT token is in third place with a volume of $1.412B.
The negative news has had its impact and users are withdrawing their assets from this exchange.
Key Insights: Tokens Net Flow
- In the top left chart, the net amount of flow is divided into two categories, stablecoins, and other tokens, which include bitcoin and altcoins, in terms of coin type. The
- The cumulative amount of net flow from the FTX exchange during the last 10 days was -$952.7M.
- -$591.6M was related to Bitcoin and Altcoins and -$361.1M was related to stablecoins.
- The largest share of the net flow is related to USDC with a value of -$144.6M, and USDT is in second place with a little distance.
Key Insights: Destinations
- The largest volume of outflow from the FTX exchange has entered Binance.
- As can be seen from the chart above, on November 7, $259.7M worth of assets were withdrawn from FTX and transferred to Binance.
- On November 1, $150M, was withdrawn from FTX and entered the Bitfinex exchange, which is a significant number compared to the data entering this exchange in the rest of the days.
- On most days, the largest share of transfers is related to Binance, and in general, 94.5% of the total output volume has been transferred to centralized exchanges.
- On November 9, the only destination of transactions was the Metamask wallet, and FTX had limited withdrawals.
Key Insights: FTT Swap
- The graph on the left shows the volume of the FTT swaps in the DEX available on the Ethereum blockchain.
- Since November 6th, users on DEXs have started swapping this token with high volume, which seems logical due to the negative news surrounding this token.
- In the graph on the right, you can see the amount of FTT token swaps on the Solana blockchain.
- Here, since November 6, users have swapped FTT to different tokens, the largest share of which is USDC.
Key Insights: SOL Staking
According to the reasons mentioned in the methodology section, on November 8, 152.9K SOL tokens were removed from staking and were probably sold, which caused the price of Sol to decrease.
But the day after that, the net amount of SOL stakes was a positive number and 48.6K SOL were staked on different platforms.
Conclusion
After the publication of negative news about the FTX exchange, more than $950M of liquidity in the form of stablecoins and altcoins have been withdrawn from this exchange in the last 10 days alone, and this issue has made FTX face a liquidity problem.
Also, on the other hand, the unbacked loans received by this exchange cause the data to confirm the negative news and give a big shock to the users and the crypto market. As a result, users doubled the problems of FTX by withdrawing their assets, and this, due to cause and effect, eventually caused the price of FTX token(FTT) to fall further and users suffered more losses. So that within two days more than 90% of the value of the FTT token was lost and a fate similar to LUNA is happening for this token.
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