Try Quests to earn cryptoOpen Analytics Bounty: ETH (November 6)
What is the Question?🚨
This is an open bounty for ethereum. In this dashboard, I will analyze FTX exchange and see what happened to it since the beginning of November and how it went bankrupt.
Analyzed Topics:
- Daily Inflows / Outflows / Netfolws of Stablecoins From/To FTX
- Total Stabelcoins Inflow / Outflow / Netflow
- Daily & Total Outflows From FTX by Destination
Introduction🚩
What is Alameda Research?
Alameda Research Ventures (ARV) is a multi-stage crypto and fintech investment firm with a mission to take a pragmatic, real-world oriented approach to finance - making it more accessible for all.
What is FTX?
FTX is a Bahamian cryptocurrency exchange. FTX is incorporated in Antigua and Barbuda and headquartered in The Bahamas. As of February 2022, the exchange has over one million users. FTX operates FTX.US, a separate exchange available to US residents.
Who is Sam Bankman-Fried (SBF)?
Sam Bankman-Fried, also known by his initials SBF, is an American entrepreneur and one of the richest people in crypto thanks to his FTX exchange and Alameda Research trading firm. He is CEO and Founder of FTX and also Alameda Research. The son of two Stanford law professors, he studied physics at MIT but was drawn to "effective altruism," the utilitarian-inflected notion of doing the best possible.
Method⚡
In this dashboard, I am going to take a look at the stablecoins inflow and outflow from known Alameda or FTX account throught Ethereum. The main table that I am going to use for this analysis are ==“ethereum.core.ez_token_transfers”== and ==“ethereum.core.dim_labels”== (for Ethereum).
At first im going to look at the daily flows of stablecoins from/to FTX/Almaeda wallets thorugh ethereum since the beginning of November, then i analyze this metric in total and after that will take a look at daily & total stablecoin outflows from FTX by destination.
In this dashboard, i analyzed the data in since ==2022-11-01== ~ ==2022-11-11== and made this dashboard on ==2022-11-11==
SBF vs CZ War: What’s Happening with FTX and Binance?
Binance CEO Changpeng Zhao (CZ) and FTX CEO Sam Bankman-Fried (SBF), two of the most prominent men in crypto, have been sparring on Twitter. SBF and FTX FUDs and scandals could affect the crypto industry, making this war bigger than them.
The release of Alameda Research's balance sheet, FTX's sibling quantitative trading firm, started the CZ-SBF drama. Alameda's $14.6 billion assets include $3.66 billion in FTT, FTX's native token, and $2.16 billion in FTT collateral, according to a private document CoinDesk examined. Solana (SOL), Serum (SRM), and other crypto tokens linked to SBF account for $3.37 billion.
Alameda's net equity is mostly FTX's centrally managed cryptocurrency, which is illiquid. FTT's market valuation is $2.3 billion, while Alameda's numbers reveal an excess of roughly 200% of its circulating supply. Alameda's assets cannot be sold without harming the market.
CZ tweeted Binance's entire FTT pullout shortly after the breach. Selling it monthly on the open market will limit market impact. CZ attacked SBF, saying liquidating their FTT constitutes post-exit risk management. If a bank run occurred, FTX may repeat history and die.
Ellison then informed CZ that Alameda will acquire all of Binance's FTT holdings for $22. The crypto community thought the response was desperate and a major red flag. CZ declined the bid and said he won't assist "those that push against other industry participants behind their backs," referring to SBF's reported backing of the DCCPA draft bill last month, which might threaten DeFi.
If SBF's claimed political attitude is the match and Alameda's financial sheet is gasoline, CZ dumping its whole FTT holdings strikes the match.
According to Nansen data, FTX stablecoin outflows reached $451 million due to crypto community FUD. FTX withdrawals also take 4-8 hours and cost more, which upsets users. FTT token is down 39% from its weekly high.
More Info
Findings👀
- In the above graphs, i showed daily and overall Inflow & Outflow and Netflow of Stablecoins From/To FTX Exchange on Ethereum blockchain since the beginning of November.
- As we see, the total netflow of alameda/ftx wallets was negative on ethereum chain and November wasnt a good month for FTX by far.
- The most stablecoin outflow of ftx/alameda wallets on Ethereum were on November 6th to 8th especially Nov 7th.
- It seems users did so many panic sells and got fomoed by big crypto guys like Binance CEO CZ.
Findings👀
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In these charts im showing the daily inflows and outflows and netflow of stablecoins from/to ftx/alameda wallets on ethereum chain.
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As we see, recently after the beginning of November ouflows increased on Ethereum and the highest ouflow from ftx/alameda wallets was on November 7th and most of it was USDC.
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USDT and BUSD followed USDC in terms of outflows and will place in the second and third place in this case respectively.
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Findings👀
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These charts are showing the stablecoins inflow and ouflow from/to ftx wallets on ethereum chain.
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There were 5 different stablecoins on ethereum in ftx wallets.
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It looks like USDC is the most popular stablecoin on FTX Ethereum and its outflow was more than its inflow since the beginning of November.
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USDC recorded a total of 3.68B inflow and 3.79B Outflow in the past month on ethereum from/to ftx/alameda wallets.
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USDC is at the first place by total flows, then USDT and BUSD will place after it respectively.
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The left chart say to us that after the beginning of November (After Nov 5th), FTX Stablecoins balances experienced a huge drop and most of the users moved their stablecoins out of FTX. This event mainly happened on Nov 6th & 7th and seriously harmed FTX and put it on the verge of bankruptcy.
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Findings👀
- In these charts we are seeing the daily and share of stablecoins outflows from FTX/Alameda wallets by destination.
- It is obvious in the charts that most of the ouflows on ethereum (Over 72%) recently were to Binance exchange and this event peaked on November 1st, Binance received over 240M stablecoins on ethereum from FTX.
- Coinbase and Bitfinex exchanges were the most popular exchange destinations for ftx stablecoins after Binance.
Conclusion💡
- It can be observed 72% of volume of Stablecoins is Binance followed by alameda research with 16.3%. Daily transferred volume to Binance peaked at $240M in Nov 1st, and nearly $4.4B transferred to Binance in total.
- As we see, recently after the beginning of November ouflows increased on Ethereum and the highest ouflow from ftx/alameda wallets was on November 7th and most of it was USDC.
- It looks like USDC is the most popular stablecoin on FTX Ethereum and its outflow was more than its inflow since the beginning of November.
- USDC recorded a total of 3.68B inflow and 3.79B Outflow in the past month on ethereum from/to ftx/alameda wallets.
- USDC is at the first place by total flows, then USDT and BUSD will place after it respectively.
- The most stablecoin outflow of ftx/alameda wallets on Ethereum were on November 6th to 8th especially Nov 7th.
- after the beginning of November (After Nov 5th), FTX Stablecoins balances experienced a huge drop and most of the users moved their stablecoins out of FTX. This event mainly happened on Nov 6th & 7th and seriously harmed FTX and put it on the verge of bankruptcy.
- It is obvious in the charts that most of the ouflows on ethereum (Over 72%) recently were to Binance exchange and this event peaked on November 1st, Binance received over 240M stabelcoins on ethereum from FTX.
- In general, these discussions were so bad for FTX and its overall funding, by far right now its native token (FTT) dropped almost 80% just in a day, very similar to Terra crash on May.
