Data and analytics platform Nansen pointed out that the foundations of FTX’s liquidity crisis may have been laid in 2021. Allegedly, the company, together with Alameda Research, manipulated the price of the FTT token for a long time.
In the report published on the official website on November 17, Nansen stated that the organic bond between FTX and Alameda Research It goes back earlier than thought suggested. In addition, the report states that companies will use FTX’s native token, FTT. manipulate allegations were also included.
Drawing on on-chain data in the report, Nansen identified a number of wallets that place Alameda as one of the previous liquidity providers for FTX in 2019. The first in FTT’s supply 350 million tokens of 27 million It was alleged that it was transferred to Alameda’s wallets in FTX. The total supply of the two firms to 86% Based on the data, it was revealed that there is very little FTT in the market because of the fact that it is dominant in the market. This is FTT’s open to manipulation revealed its structure.
On the other hand, FTT is rapidly gaining momentum in the 2021 bull season after the $0.1 IPO price. for 84 dollars rose as much, but Nansen said the markets of both companies without causing panic Since they cannot liquidate their holdings, FTT reservesi use it as collateral to get a loan he guessed.
In the report, Alameda Research in September 2021 and recently stopped withdrawals Genesis Global Trading took place between 1.6 billion dollars Attention was drawn to the value of FTT exchange. According to Nansen, the real problem started when Alameda and FTX used their loans as a natural leverage to raise the price of FTT.
In the report, they realized that while the only way to solve the problem of Alameda, which was faced with a liquidity crisis for the first time in the crypto collapse in June 2022, was to sell its FTT reserves, they realized that they could not do this without lowering the market price. At this point, over $4.4 billion worth of FTT sent from Alameda to FTX is actually from FTX to Alameda. to a liquidity injection using customer deposits It was noted that it could indicate
Ultimately, when Binance CEO Changpeng Zhao decided to sell FTT in Binance reserves, the panic that emerged in the market caused sudden exits from FTX and FTT, and the funds that FTX had to keep in return. not in place it was noticed.