FTX stablecoin reserves plunge as community fears bankrun
The cryptocurrency community fears FTX could trigger another Terra-like crash after the exchange’s stablecoin reserves plummeted over the past 24 hours.
FTX Stablecoin Outflow Leads Other Exchanges
The Data Nerd reported that Nansen data show Its FTX stablecoin outflow was the highest of any exchange in the last seven days. Screenshot shows FTX reserves down by $300 million, with balances at $261 million at time of tweet .
Another blockchain analytics firm confirmed the above. CryptoQuant data It shows that the FTX stablecoin reserves are currently at $107 million. rammed $51 million faster, up 93% in the last two weeks.
#PeckShieldAlert ~68.3 million stablecoins ($BUSD, $USDT, $USDC) from Alameda Research @FTX_Official From multiple sources (Circle, Paxos) within the last 4 hours pic.twitter.com/KJFg6u6GsR
— PeckShieldAlert (@PeckShieldAlert) November 7, 2022
The increase in reserves is due to Alameda Research sending stablecoins to FTX from Circle and other exchanges. Alameda is a cryptocurrency trading company owned by FTX founder Sam Bankman-Fried.
according to look on chainAlameda has withdrawn Received 487 million USDC from Circle and transferred to FTX exchanges since November 3rd. Also, from Circle he withdrew over 197 million USDC. This comes after CEO Caroline Ellison said the trading company was willing to buy her FTT on Binance for $22 each.
On the other hand, CryptoQuant data also show Ethereum withdrawals on FTX have reached all-time highs. His current FTX reserves are 108,246.43 ETH, the lowest level since November 2020.
Jump Crypto, Nexo Reed Drawer
Chinese cryptocurrency reporter Colin Wu reported that firms such as Jump crypto and Nexo have made large withdrawals from FTX in the past 24 hours.
According to Wu, Jump withdrew $40.4 million USDC from the SBF-led exchange.At the same time, Pec Shield I got it Crypto lending firm Nexo also withdrew over $90 million from FTX.
This wave of withdrawals caused the value of FTX hot wallets to plummet from $2.4 billion to $1.8 billion in the last 24 hours, Lookonchain said. report.
Influencers urge people to pull out of FTX
Ran Neuner, crypto influencer and founder of crypto banter, has told his followers to withdraw funds from FTX.
I have nothing against FTX, but I don’t see any advantage in keeping funds on any exchange, let alone an exchange with FUD.
I’m almost certain that FTX will be fine, but even if there’s a slim chance that they aren’t, I hate to think they had the opportunity to back out and didn’t take it! https://t.co/w8n7PWhL11
— Ran Neuner (@cryptomanran) November 7, 2022
According to Neuner, he has nothing against the exchange. However, “There is no benefit to keeping your money on any exchange, especially one with FUD.”
Several traders who attempted to withdraw from the exchange stressed that they experienced delays, and some revealed they were charged exorbitant fees to process their withdrawals. did.
FTX Withdrawal Fee 100x to $100 https://t.co/DX LyOW50Cx pic.twitter.com/WQlj1eIFwa
— Materials Scientist (@Mtrl_Scientist) November 6, 2022
FTX is very interesting.. USDC ERC20 withdrawals have a withdrawal fee of 100 USD and BUSD BSC withdrawals have a withdrawal fee of 25 USD. But in the meantime they claim to be financially sound.. So why are you so afraid of a capital outflow? Still trying to scam your customers…🫠🫠#FTX
—SZ (@kingslucifer) November 6, 2022
I have been waiting for nearly 8 hours to withdraw my BTC from #FTX
Long delay after ‘bankruptcy’ news first broke pic.twitter.com/9IlUnUoePD
— Minutes (@min17992010) November 6, 2022
Ben Armstrong (BitBoy Crypto), on the other hand, said, “We certainly encouraged people to close their FTX accounts, but not because they are insolvent.” He added that he doesn’t think the exchange will harm its customers, as the issue will be gone again once the deal with Voyager is completed in December.
Everyone is waiting for you to say, “I told you so!”about @FTX_Official Rumored to be bankrupt.
I don’t really mean to. I’ve certainly urged people to close their FTX accounts, but not because they’re insolvent.
Do what you have to do to withdraw funds…
1/2— Ben Armstrong (@Bitboy_Crypto) November 6, 2022
FTX claims all is well
Bankman-Fried, meanwhile, maintains that everything is going well for the exchange.
3) We have already processed billions of dollars in deposits and withdrawals. we continue. (We’re doing anti-spam checks to do more processing. Sorry if you have. We’ve reached node rate capacity. We’ll continue.) Also, a large amount of USD <> stablecoins Conversion in progress.
—SBF (@SBF_FTX) November 6, 2022
According to the crypto billionaire’s Twitter thread, the exchange “has already processed billions of dollars in deposits and withdrawals today. We will continue.” It added that it welcomes users who withdraw funds from time to time.