Crypto markets rocked as stablecoin reserves deplete, Curve 3pool concentrated by USDT, 60k BTC leaves Binance, Alameda shorts USDT

admin November 11, 2022

0 4 minutes read

Continued from one of the craziest days The 24/7 cryptocurrency market keeps investors busy in November 9th Crypto History. Binance released Proof of Reserve, FTX stablecoin balance near zero, Curve 3pool concentrated on USDT, 60,000 BTC left Binance. Rumors of Alameda Research’s short position in Tether USDT could be looking for the last ditch.

Binance Proof of Assets

Binance has released proof-of-asset information promised by CZ following the impending FTX demise. More intent on revitalizing the market and injecting trust into the exchange, Binance announced after it was revealed that there was an $8 billion hole in FTX’s balance sheet and no way to process customer withdrawals. teeth”proof of assets”

Binance provided an overview of all the assets it held, and the exchange included links showing every address on-chain for each token and their correlation with bridge assets on other chains. The ability to open each network’s blockchain explorer and view data on-chain demonstrates the power and ability of the exchange to be completely transparent.

The level of transparency exhibited by Binance is unmatched and gives investors confidence that trust is not required. Binance’s trustless approach to transparency has been applauded following claims by Celsius, Voyager and now his FTX exchange leader that assets were fully backed until the company announced bankruptcy. should.

Some notable holdings are listed below.

125,351 BTC
1,904,674 Ethereum
6,950,000 USDT
50,805,657 dots
469,665,508 XRP
745,000 LTC
5,325,500,000 BUSD
987,571,153 ADA
US$878,999,999
100,000,000 DAI

The total assets listed above are approximately $18.3 billion. However, with 385 tokens across the exchange, all assets need to be fully classified to get an accurate picture of total holdings.

Stablecoin reserves depleted

One token that has seen increased inflows to Binance over the past few days is Binance USD (BUSD), the only stablecoin to see an increase in deposits. The total supply of all stablecoins on Binance approaches $26 billion. The chart below shows the net inflow of BUSD into Binance as opposed to other stablecoins.

Bankrupt FTX has a very different story about its stablecoin balance as BUSD, USDC, USDT and DAI are all close to zero as the tokens have been withdrawn from the platform. Withdrawals are currently closed on the exchange and new user accounts cannot be created.

Bitcoin falls 77% from ATH

Binance’s need for greater transparency during this volatile time is also reflected in the price of Bitcoin. The top cryptocurrency by market capitalization has fallen 77% from all-time highs in the fourth-largest drop ever, below levels reached during the Terra Luna collapse in May this year.

Ethereum is currently down 77.3% from its all-time high, making it the fourth biggest drop of all time.

The resulting downward pressure on the Bitcoin price will see Bitcoin fall in all four quarters of the year for the first time in its history.

Ethereum had a strong third quarter as investors flocked to The Merge. However, Q4 is expected to be Q3 of this year when Ethereum shut down.

DeFi stablecoin imbalance

The DeFi industry is currently showing signs of stress while the fallout of FTX has rocked major tokens. For example, the Curve 3 pool is 84% concentrated in USDT as DAI and USDC balances fell below 8% each. If a user attempts to withdraw funds in a denomination different from the one used for deposit, significant imbalances can lead to liquidity problems.

This literally made me say “oh my god” out loud 3 times in a row. https://t.co/HU9ySzcleb

— Dirty Foam Media: Fish in a Barrel (@MikeBurgersburg) November 10, 2022

Twitter user astromagic confirmed a $250,000 deal Alameda made to swap USDT to USDC. The deal appears to be part of a larger strategy to short USDT to hundreds of thousands of dollars. Given the size of the cryptocurrency industry, this number may not seem significant, but it raises the question of why Alameda is doing such a deal at this point.

So Alameda trying to short USD?

> Supply USDC with aave
> Borrow USDT on Aave
>Swap USDT to USDC on the curve

Dafuk man…https://t.co/F3tQvDMfF8

— Astro Magic (Trust_No_One) (@astro__magic) November 10, 2022

The stablecoin was used as collateral to borrow more USDT, sold the borrowed funds to USDC, and made an online sale of approximately $550,000 USDT.

Shown below is an Alameda wallet deposit of $300,000 USDC. @AaveAave – Borrow $250,000 $USDT and sell it back quickly $USDC

This is technically an on-chain shortage of USDT and nothing significant, but wtf is going on here? pic.twitter.com/A9pLXLCE4h

— Blockmate. Apology behind DM (@blocmatesdotcom) November 10, 2022

Withdrawals increase across exchanges.

Fear, uncertainty, and suspicion within the crypto industry are growing as users seek to find safer grounds and avoid potential contagion. For example, after Terra Luna collapsed earlier this year, Voyager, BlockFi and Celsius all immediately faced liquidity issues. Additionally, FTX, Alameda Research, and FTX Ventures have a very close relationship and their investments have contributed significantly to the cryptocurrency industry. As a result, it is more likely to spread within other projects.

60,000 BTC left the exchange on November 9, the majority of which came from users withdrawing their coins. The graph below shows the amount of his BTC transferred to Binance in the last 7 days. However, Glassnode data shows that Binance still holds 600,000 BTC, which is significantly more than the proof of assets report suggests.

At the time of writing, the price of Bitcoin recovered overnight from a low of $15,600 to $17,526. Ethereum rallied from his $1,069 low to $1,290 while his FTT token on FTX climbed 214% from an all-time low of $1.08 to $3.40.

Bitcoin’s dominance has dropped to 40% from a local high of 42% at the end of October. Interestingly, however, Bitcoin’s dominance has declined during the current market turmoil, with Bitcoin hitting its 11-month high of 48.5% during the Terra Luna collapse. did.