FTX Wants to Block Recent Events

Prominent FTX Crypto broker Akameda Research, owned by Sam Bankman-Fried, the founder of the stock market, transferred approximately $370 million to the stock market this week.

On-chain data firm PeckShield Alameda Research and FTX, where the broker moved several tokens, including BUSD, USDC, and ETH, to the exchange wallet.

While it’s not entirely clear what the purpose behind the transactions was, it’s worth noting that this transfer happened after FTX bailed out at least two major crypto lenders.

Koinfinans.com As we reported, the exchange has provided Voyager Digital and BlockFi with a total of over $700 million in credit lines. Both lenders faced a liquidity crunch amid the severe plunge in crypto prices.

FTX has provided Voyager Digital and BlockFi with a total of over $700 million in lines of credit. Both lenders faced a liquidity crunch amid the severe plunge in crypto prices, negatively impacting the markets.

FTX Wants to Prevent Negative Developments

Founder Sam Bankman-Fried In a recent interview, he stated that the exchange, one of the biggest crypto players, has taken responsibility for “root contamination”. But the move also gave FTX a much larger stake in the crypto market, and the Voyager deal made Fried one of the largest shareholders in the firm.

Fried also has a 7.6% stake in the Robinhood trading app, which has a recent but significant presence in the crypto industry.
The bailouts offered by FTX come after the potential bankruptcy of Three Arrows Capital, the crypto ‘hedge fund’ that both Voyager and BlockFi have been exposed to. The contagious effect of bankruptcy in important companies created fear and panic in a short time and triggered a decrease in prices.

Although Fried, owner of FTX, attributes the weakness of the crypto market to the Federal Reserve’s rate hikes, there seems to be more factors at play.

Problems at Three Arrows Capital and the risks of bankruptcy at crypto lender Celsius were driven by weakness in Lido Staked Ethereum (stETH) prices.

Both companies used this token as collateral and were unable to complete their margin calls after their price plunged. As a result, positions were liquidated and all tokens were released.

However, the stETH weakness coincided with Alameda’s exchange of approximately $57 million worth of tokens on Curve, which caused a liquidity pool imbalance and dropped the token’s peg to Ethereum.

FTX CEO Fried dismissed speculation on the matter, calling it a “stupid conspiracy theory.”

You can follow the current price action here.

Disclaimer:What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

source site-7