Concerns that Alameda Research will have to sell its FTX Tokens (FTT) are moving the altcoin market. Whales are piling tons of coins on Binance amid the statements of exchange CEOs Sam Bankman Fried (SBF) and Changpeng Zhao (CZ).
Altcoin whales pile million-dollar tokens on Binance
FTX Token (FTT) is at risk of further declines due to pessimistic news and a technical outlook. The exchange token has technically formed an inverted cup and handle pattern with the recent drop. With sales on November 6, the support level of the formation fell below $22.50. These sales continued on 7 November as well. After the mutual statements of SBF and CZ, he had the opportunity to relax a little.
The inverted cup and handle pattern technically suggests a downward correction equal to the distance between the support of the pattern and the top. In such a case, the FTT price will risk falling to $16. If the bears win this fight, we could see the FTT price drop close to 30%.
Binance announced that it will sell its FTT Tokens
cryptocoin.comAs you follow, Binance CEO CZ announced that they will sell FTT for $2.1 billion on November 6th. CZ says that Alameda Research is in danger of going bankrupt behind this decision. The investment firm, backed by Sam Bankman-Fried, holds $5.8 billion in FTT on its balance sheet as of June 30. Binance CZ stated that they plan to sell their FTT tokens against the risk of selling them.
Meanwhile, six million FTT Tokens were given to Binance in the midst of the market-warming announcement. The above statements were followed by the transfer of approximately 23 million FTT tokens worth $530 million flowing to Binance, which CZ confirmed to be ready for sale.
This also coincided with an increase of more than $100,000 in individual transactions.
Alameda Research faces bankruptcy claims
Alameda Research has $14.6 billion on its balance sheet as of June 30. FTT accounts for 88% of this fund with $5.8 billion. In addition, the firm holds $1.2 billion worth of Solana (SOL). Alameda Research, on the other hand, reportedly has $8 billion worth of debt, including $2.2 billion in loans secured by the FTT. This raises concerns that the company will soon go bankrupt.
Alameda Research CEO Caroline Ellison says the firm has more than $10 billion in funding. She also opposes these claims by stating that she returned most of her loans in 2022 due to the tightening in the credit space.
Bankman-Fried, on the other hand, called the rumors “baseless”. He reassured his followers that FTX keeps audited financials.
However, crypto exchange FTX has been seeing a 95% drop in stablecoin reserves over the past two weeks. As of November 7, it is holding $26,141 million worth of stablecoins, a one-year low.
Some analysts say altcoin price will recover
Meanwhile, investors are selling FTTs at a loss amid news of bankruptcy, according to EtherScan data. For example, a small whale reportedly lost 65% on its FTT investment. Still, independent market analyst Satoshi Flipper sees a potential rebound in FTT price. “Too much FUD, so I’ve been here for a long time at $22.95,” the analyst wrote.
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