After the bankrupt crypto exchange FTX disappeared, reports on its cold wallets reveal that the company is using its own tokens Solana and other coins to support FTT.
These coins pumped FTX, Solana and FTT!
In some circles, it is considered that FTX sells Bitcoin and ETH as soon as deposited to support FTX-backed coins like FTT or Solana. On this matter, according to Andrew Kang of Mechanism Capital, “FTX and Alameda dumped our assets into the crypto market to finance their unprofitable gamble. Otherwise the markets would be much higher.”
In addition, Celsius’s bankruptcy investigator Shoba Pillay has confirmed that he is selling CELs and selling Bitcoin and ETH deposited by customers on his platform. However, there has been no such confirmation for FTX, so far it is estimated that they have given a $10 billion loan to Alameda, some of which is invested in startup capital, and possibly selling some crypto in return. FTX’s cold wallet balance in the table below shows a huge shrinkage in a short period of time.
The data shows that FTX is holding as much as one million ETH at its peak at the end of 2021. Then just weeks later, on January 28, 2022, the balance dropped to 8,000 ETH, all disappearing. One million ETH is currently worth $2 billion. In or around January 2022, it was about five billion. This address was reset with the bankrupt exchange.
We see this fluctuation before 2021. For example, FTX’s cold wallet occupancy has dropped from 600,000 ETH in September to 300,000 in the new year. From a low of 8,000 in January 2022 to half a million in June, and then to about 15,000 when Luna collapsed later that June.
Is FTX responsible for the crypto bear market?
According to Celsius-related court documents, sales took place in waves to close gaps in stablecoins or BTC/ETH, rather than selling Bitcoin or ETH. If the same happened in FTX, the above table would make some sense, but unfortunately it is not fully analysable. Transaction records on Etherscan can only be traced back to October.
Etherscan data, specifically regarding Bitcoin, says that FTX received a total of 160,000 BTC, but looking at the transactions, it’s unclear exactly when such sums were received or transferred apart from 20,000 BTC. On the other hand, it turns out that one million ETH addresses that have been deleted from the market in recent months may be linked to FTX. When the exchange went bankrupt on November 8, the balance of 325,000 ETH was capped and no more traded.
If that prediction isn’t correct, then FTX probably sold billions of ETH over the course of about two years, during the bull period and especially the bear period. Because excluding FTX’s wallets, depositors who did this within weeks would trigger a huge pressure on the price.
FTX suppresses expected price action of Ethereum upgrades
This theory is very important for ETH bulls. It partially explains why the rate hasn’t been repriced after Merge migrated Ethereum to its PoS network:
The merge took place in mid-September, but its re-pricing began in July as ETH doubled from $1,000 to $2,000 by mid-August. FTX’s ETH balance fell from around 20,000 at the end of June to around half a million again in mid-August, and then to 55,000 ETH in mid-October.
So this all fits nicely, but there is currently no concrete evidence. This leads to the question of whether it’s the bull equivalent of Tether pumping them all, in which case FTX drains them all. Time will tell, but there is solid evidence that some currently bankrupt organizations are selling Bitcoin and ETH, so some of the artificial selling pressure has been lifted.
ETH withdrawals started
With the Shanghai escalation implemented on April 12, Ether is now free to the approximate $25 billion stake staked in December 2020. cryptocoin.com We have included the reaction of the ETH price and expert predictions in this article.
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For the rest of the article, Solana is Not FTT! FTX Sold Millions Of This Altcoin!