Introduction

• Another day in the Crypto world and another failed scenario!
• FTX and FTT may cause one the other big crash in the Market. This week, There were some rumors on the FTX exchange and Binance. Rumors come true when FTT token prices, the native token of the FTX exchange dropped more than 70%. Due to that, All other tokens in the crypto world dropped.
• In this analysis, You will read about inflows and outflows from and to FTX/Alameda addresses. I analyzed the net, Inflow, and outflow of stablecoins from and to the FTX exchange.

Analyzed by Hess - Reading Time Almost 8 Min.

Inflow and Outflow

• The Highest inflow was 1.45B US dollars and the highest outflow was 1.44B US dollars which both happened on November 7.
• The highest negative volume in US dollars was -163M US dollars which happened on November 6.
• The highest number of transactions was on November November 7, The total number of outflow transactions was 13.9K and the inflow transactions were 1313.
• Based on the daily net volume, Almost 8 days net volume was + and 6 days net volume was - in the last 14 days. After November 6 when the net volume was 111M US dollars, The net volume dropped and reached 163M US dollars in November.
• The normal number of inflow and outflow transactions on FTX was 1-3K transactions but on November 7, The total number of outflow transactions increased to 13K but the total number of inflow transactions didn’t change.

What is Alameda?

Alameda Research is a leading principal trading firm. We use internally developed technology and our team's deep crypto expertise to trade thousands of digital asset products, including all major coins and altcoins, as well as their derivatives.

What is FTX exchange?

FTX is a Bahamian cryptocurrency exchange. FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas. As of February 2022, the exchange has over one million users. FTX operates FTX.US, a separate exchange available to US residents.

What Happened on FTX?

• Two of the world’s largest crypto exchanges are set to become one entity. After a week of turbulence with Sam Bankman-Fried FTX, a crypto exchange that offers exposure to over a dozen crypto coins from BTC to ETH to FTT, the native token that the exchange itself mints, may soon be acquired by Changpeng Zhao, known as CZ and become part of Binance’s portfolio.

  Binance CEO, CZ said on Twitter that they have filed a letter of intent to soon acquire their longstanding rival, FTX. This news comes as a twist after Binance announced earlier in the week that they intended to sell over $500m of FTX’s FTT coin in Binance’s custody over the course of several months.

  The decision to liquidate FTX’s native token caused a massive downturn in the token’s price and almost led to a bank run on FTX’s reserves by retail investors who held assets on FTX’s platform.

  Binance’s decision to acquire FTX was made in part to “protect users” and “help [FTX] cover the liquidity crunch.” FTX was most recently in talks to also acquire another now bankrupt crypto exchange, Voyager, and aid retail investors recoup a portion of their frozen funds. Binance intention to acquire FTX now puts that deal in jeopardy.

• Bankman-Fried also founded the prop trading and market-making firm Alameda, which at least has some exposure to the FTT tokens. FTT token slid to as low as $14.32 from $25.47 earlier on Tuesday as investors lost faith, according to Binance’s trading view. (Hours after the news broke, the token dropped to as low as $2.51 before a slight recovery.)

  In a note to clients earlier Tuesday, research firm Bernstein suggested that FTX should consider shutting down Alameda due to the perceived risks.

• “Binance is the immediate trigger, but FTX should resolve its relationship with Alameda. FTX cannot carry on its existing ownership structure with Alameda. FTX needs to completely ring-fence itself and potentially shut down the Alameda prop trading business. If Alameda’s trading operations impact FTX’s customer confidence (perception of Alameda trading against users on FTX and Alameda’s state of finances), then there is more downside to running Alameda than otherwise,” a Bernstein analyst wrote in the note.

• The average inflow volume in USD is 415K US dollars and the average outflow volume in USD was 159K US dollars.

• In the last 14 days ago, The total outflow volume was 8.65B US dollars and the total inflow volume was 8.1B US dollars.

• 73% of users were outflow users and 26% of users were inflow users.

• The average inflow volume increased significantly since November 5 and reached up to 1M US dollars. As you have seen, The total number of inflow transactions didn’t change but the average volume shows fewer transactions with high volume in USD went through FTX.

• Users had almost 2.5x transactions higher than the inflow transactions.

Inflow and Outflow Per Symbol

• The highest inflow and outflow volume was based on USDC.

• The highest volume of USDC, 750M US dollars went to FTX on November 7. Also, On that day, 720M US dollars went out of FTX.

• The second top token was USDT. The inflow volume was 348M US dollars on November 7 and the Outflow of USDT was 321M US dollars on that day.

• Since October 30, The total inflow and outflow volume per symbol increased until November 7. There were some ups and downs between inflow and outflow. But after CZ and Sam Tweets, The volume of Stablecoins increased significantly.

Transactions:

• We can ignore BUSD and DAI tokens. Because the most unusual volume and transactions was based on USDC and USDT. The total number of outflow transactions on USDC and USDT was 2-3X higher than inflow transactions.

Users:

The total number of USDC users was 13.7K unique wallets and the total number of outflow Users was 14.7K unique wallets.

Volume:

Overall, The net volume of USDC was -300M US dollars in the last 14 days. Also, The net volume of USDT was -100M US dollars.

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @hessaminanloo

:flying_disc: Discord: hess#0890

:calendar: Analyze Date: 2022/NOV/09

Inflow and Outflow from and to FTX per Platform

• The most Inflow and Outflow volume destination was BINANCE. Other It seems other platforms had a normal inflow and outflow in the last 14 days.
• The highest outflow volume was 328M US dollars from FTX to Binance on November 1.
• Also, The highest inflow volumes were 124 and 152M US dollars from Binance to FTX on November 1 and November 2.

It seems there were some unusual outflow activities from FTX to Binance. As I mentioned, The highest volumes went to Binance on November 1. The second top highest volume, 202M US dollars went through Binance. We already know that the highest amount was USDC and went through Binance from FTX.

Inflow and Outflow from and to FTX on the Solana chain

• On November 6 and November 7, The highest volume in USD came to FTX. About 450M US dollars came to FTX at that time.
• Also, The highest outflow volume was on those days. About 13M US dollars went out from FTX. Most went through Gate.io and Coinbase.

It seems nearly 450M US dollars come from the Solana chain to FTX. This volume was unusual because before that the average daily volume was 40-60M US dollars.

• The Daily share shows the Inflow to FTX from Kraken increased up to 70% of the total volume since November 3. Before that, Binance had the highest volume share to FTX. On the other hand, the highest outflow volume went through Binance. However, On November 3, The Coinbase share increased up to 40%. About 60M US dollars went through Coinbase at that time.

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• Gate.io with 17M US dollars had the highest share among other platforms that volume came from FTX.

• Coinbase with 24.6% of shares is the second top platform that money came from FTX.

• It is interesting that most of the volume went through Gate.io before the rumors but during the dump and rumors, The higher volume went through Kraken and Coinbase. About 15M US dollars in two days went through Coinbase and Kraken from FTX.

Conclusion

• It seems the situation was different with Luna and UST crashes. It is true that a huge volume went from FTX to other platforms especially Binance but A huge volume of USD came from Binance to FTX. Also, The Net Volume didn’t show an unusual number. So, I can not say that everything was fine but It is a Crypto market and nothing is clear.