The cryptocurrency world has been focused solely on the tension between Binance and FTX for the past few days. So, how did this chain of events, which negatively affect the crypto money markets, develop? What happened in the process?
Again in the cryptocurrency community weird weird stuff is happening. Bitcoin, which has not performed well for months, has recently recovered and rose above the level of 21 thousand dollars. Seeing this rise, altcoins also started to recover and started to make profits for their investors again. However, after the news was suddenly served, the markets crashed again. Bitcoin drop, exceeded 7 percent in the last 24 hours.
So what happened again? In this content, we have been talking about crypto money investors for several days. Binance-FTX conflict We’ll take an in-depth look. If you’re ready, let’s start…
The fuse of the discussions was ignited with a report shared last week!
*Bitcoin’s one-week price chart. Source: Coinmarketcap
The basis of the events in recent days is by Coindesk, one of the largest crypto money news sites in the world. to a published report is based. In this report published on November 2, 2022, third largest cryptocurrency exchange in the world There was some information about FTX and the billionaire founder of this stock market, Sam Bankman-Fried. However, these are not the key points of the report. The real bomb was also founded by Sam Bankman-Fried and known to be in close relationship with FTX. Alameda Research The cryptocurrency has exploded on the trading platform.
Coindesk, which managed to reach the balance sheet of Alameda Research, shared statistics that fell like a bomb on the agenda. According to the report, Alameda Research with FTX, two independent companies Although it looked like it, the truth was different. So much so that Alameda had $14.6 billion in assets. However, $5.82 billion of that is the native cryptocurrency used on the FTX exchange. FTX Token‘di (FTT). Moreover, the $3.66 billion portion of this FTT was also locked. So it could not be converted into cash. “What’s in it?“We seem to hear you say. Let’s explain!
The amount of FTT Alameda owned was more than the market cap of the cryptocurrency, 193 percent more!
*One month price chart of Bitcoin. Source: Coinmarketcap
The report by Coindesk, FTT’s so to speak “balloon“. Because according to the statements made so far, the market value of FTT was 3 billion dollars. However, Alameda said that FTT’s market volume up to 193 percent He was holding the cryptocurrency. Cory Klippsten, CEO of investment platform Swan Bitcoin, made a statement on the subject, “It’s fascinating to see that the majority of Alameda’s equity is actually made up of air-issued tokens by FTX.“In this statement from Klippsten, in a sense, “it’s just a big balloon“ was implying.
Alameda’s balance sheet was not entirely FTT. The company has $134 million in cash, $2 billion in stocks, $3.37 billion in crypto—of which $863 million locked Solana (LEFT)- holding. Let’s say something even more interesting: Alameda was a company with $8 billion in debt. All of this led to the notion that Alameda was actually just a startup and FTX-funded company. Sam Bankman-Fried appeared to have founded two large companies, but in fact your own empire had established. Because both FTX and Alameda were among the biggest in their industry. Moreover, it was announced that Alameda would provide financing to companies with cash problems. Yeah, with no money…
Both Alameda and Sam Bankman-Fried denied the allegations!
The first name to make statements about Coindesk’s report was Alameda CEO Caroline Ellison. Defending themselves, Ellison said that the report was subset of all entities Said it contains. Mentioning that full payment has been made for all loans to date, according to the CEO, which is not included in the report. 10 billion dollars There was more capital. Sam Bankman-Fried said in his published report “unfounded‘ he described.
Binance CEO CZ did not miss the opportunity!
The first to react to what happened was Binance CEO Changpeng Zhao, also known as CZ. In the past, approximately $2.1 billion Speaking on behalf of Binance, which bought FTT, the CEO said that the crypto money in his hand announced that it will sell all. The events that took place months ago and caused a serious collapse in the crypto money markets. from the Luna incident Explaining that the lesson was learned, CZ said that these sales “risk management‘ commented.
There were remarkable details in CZ’s statement. Acknowledging that they have supported FTX in the past, the CEO said that this is now over. “We’re not going to pretend to have sex after we’re divorced.CZ, who made a strong exit as “, said that they are not against anyone but behind other names in the industry. lobbying activity He said that they would not care about an establishment that continues. What CZ meant here were some of the allegations that came up in the past. According to these allegations, FTX was lobbying behind Binance. In addition, FTX’s senior management has been dealing with Binance recently. harsh statements they did too…
And the button has been pressed for FTT sales!
In his statements, CZ stated that FTT’s sale transaction so as not to affect the investor. He said it would be done with care and would continue for several months. After the explanations, there was a remarkable development. So much so that about $585 million worth of 23 million FTTs, It was moved from his wallet. Citing a post on Twitter, CZ explained that this FTT is owned by Binance.
Caroline Ellison aspires to Binance’s FTTs so that FTT does not lose value!
A new curtain was opened in the events that started to make the investor very uneasy. Making a new post after CZ’s statements, Alameda CEO Ellison said that they can buy all the FTTs in Binance’s hands, per FTT. that they can pay 22 dollars explained. The reason for making such a statement was very simple. The number of active wallets trading FTT was between 200-300, and large volumes of sales demand made it possible for FTT to to depreciate would cause. For those who are wondering, let’s say; price of 1 FTT when this offer is made 26 dollars level… As you can imagine, this request was denied!
While things were already messy enough, Bybit was included in the discussions!
*BitDAO weekly price chart. Source: Coinmarketcap
The events and the subsequent statements directly affected the markets, and the money of the investor, who was afraid of mutual bickering, began to melt. While investors are focused on calming the situation, this time with another cryptocurrency exchange. BybitStrong statements came from. According to the company’s claim, Alameda had 100 million BitDAO (Bybit’s local cryptocurrency) in return for a promise not to sell for 3 years, but did not keep this promise and sold a large amount of BitDAO for the resulting cash needs. This hefty sale was completed by BitDAO in as little as 1 hour. more than 20 percent led to its fall. Parallel to this, FTT also lost another 20 percent in value…
Caroline Ellison also denied this claim!
The name that made statements about the allegations of Bybit co-founder Ben Zhou was again Alameda CEO Caroline Ellison. “We’re very busy right now, but when things settle down, we don’t think these sales were caused by us. we will prove.‘ said Ellison, stating Bybit’s claims with these words. rejected it happened.
Let’s come to yesterday: withdrawals have been stopped in FTX!
The tremors in the cryptocurrency markets had intimidated the investor. People have been chasing after the FTX-related allegations to save their money. The easiest way to do this is to make money in the stock market. to transfer to another medium. In this context; Within a few days, the amount of money withdrawn from FTX reached $ 6 billion. Yesterday, however, was expected and FTX stopped all withdrawals. FTX, literally was on the verge of bankruptcy.
CZ is back in action: we’re going to buy FTX!
Making a statement on Twitter yesterday evening, Binance CEO CZ said that FTX asking them for help told. The reason for this help was that there was no money left to be given in the stock market. So FTX, had actually sunk. CZ also uses the stock market to both protect the investor and save FTX. on the purchase He said they had reached an agreement of intent. According to CZ, a formal agreement will be reached in the coming days. Immediately after this statement, FTX Global from FTX Turkey No withdrawals can be made transferred.
“#SAFU”, one of Binance’s insurance funds, has been raised to the level of 1 billion dollars!
When we came to the morning hours, a new statement came from CZ. Binance’s against price fluctuations An addition was made to “#SAFU”, one of the insurance funds he established for investors. With the last arrangement made, the money in the fund, 300 million dollars worth of Bitcoin (BTC) and $700 million worth of Binance Coin (BNB) and Binance USD (BUSD).
So what should we take from all this? (Editor’s note)
These events showed that the atmosphere of panic, once again lost to the investor. Because when we look at the market volume in Coinmarketcap, we see that the volume, which was over 1 trillion dollars a few days ago, has decreased to 878 billion 223 million 182 thousand 200 dollars as of the time of this article. That is, the investor sold (possibly at a loss) while taking blood in the markets and withdrawing his money from the crypto world. He also met with CZ, CEO of Binance, the world’s largest cryptocurrency exchange. to quarrel We’ve seen what kind of consequences it can have with this event…