FTX Exchange

In this post, we intend to review the events of last night in chronological order (hours are my country time):

5:45: Reports of withdrawals stopped at ==FTX exchange==. In fact, this incident was a shot in the arm against SBF's claims of making the conditions appear normal for this exchange. With the announcement of this news, the FTT token fell twice and fell to 14 dollars.

7:40: FTX and Binance agreement announced. FTX exchange and also CZ announced on their Twitter accounts the agreement of these two exchanges to buy FTX through Binance. According to this agreement, which is not binding for Binance, Binance undertakes to pay all the assets of the users of the FTX exchange, and in return this exchange is sold to Binance. With the announcement of this news, the cryptocurrency world was in a big shock because before the announcement of this news, SBF and CZ were fiercely fighting each other, and CZ had dealt a big blow to FTX by announcing the sale of Binance's FTT tokens. After announcing this news, the FTT token rose to $21.

15-minute celebration: while everything seemed to calm down the market and even the token of the Binance exchange BNB jumped by 23% to the $400 mark! But with the negative reaction of the activists to this action of Binance, as well as comments from the legislators that this agreement is illegal based on the antitrust principle that prohibits big competitors from supporting each other, the market fell more strongly than before! Bitcoin fell to $17,000 and FTT token fell to $5.

And as for the market situation in the future: due to the strong role of FTX in the digital currency market, including investments in numerous projects, as well as a significant asset of various tokens, including Solana (SOL), which we mentioned in a separate post yesterday, we have to wait. And see how this exchange's task and its agreement with Binance exchange will be. If the FTX exchange cannot somehow find a way to pay its obligations, it seems that we have to wait for another domino of bankruptcy in the world of digital currencies!

On November 6, CEO of Binance CZ announced the company's desire to get rid of FTT. The assets, together with BUSD totaling ~$2.1 billion, were the result of the company's exit from its portfolio investment in FTX.

He stressed that the decision was not against a competitor, as it was important for Binance to maintain the resilience of an emerging industry. The reason was "recent revelations," CZ explained.

• The 4 Tokes with the most inflows and outflows from FTX on Ethereum in the past week have been USDT, USDC, FTT, and BUSD
• Drastic Token Outflows From FTX on Ethereum Stated on November 5th

Most of the exits from ftx/almeda from October 26th to November 1st were to gate.io (83%) While after this date until November 8th, the percentage transferred to this exchange decreased and the highest percentages were to coinbase and kraken. In the daily chart that has been sent, it is clear that since last week, the volume of output, which was mostly directed to gate, has decreased, and coinbase is the most popular output destination of stable coins.

Conclusion

• There is an increasing outflow of all assets especially stablecoins from the FTX exchange in recent days.
• The majority of transfers for all assets are to the Binance exchange.
• Most number of outflowers have interacted with contracts such as USDC, USDT, Uniswap, BUSD, Shiba Inu, 1inch Exchhange, Chainlink, HashFlow Token and similar destinations (majority of them are other tokens) after removing their fund from the FTX exchange.
• The highest ouflow from the FTX exchange happened around 6:00 AM on 8th November.
• The wallet balance of the FTX exchange has decreased dramatically over time, especially on its stablecoins which are almost zero!
• currently, the most token held in the FTX exchange is FTT.
• FTT token price has decreased dramatically equal to its launch date’s price (~$2).
• FTX and FTT are very close to become anyother Luna and Terra as Star Xu (OKX Founder) has predicted.

Based on the above charts, After transferring out the assets from FTX exchange, USDT, and USDT tokens contract are by far the most popular interacted contract of Outflowers from FTX exchange. But, we can see some other destinations such as Uniswap DEX, BUSD, FTT token, Sandbox Token, Shiba Inu, Chainlink, 1inch Exchange, HashFlow Token and many other destinatinos (majority of them are other tokens) on the list of top popular interactec contract by outflowers from FTX exchange.

Methodology

In this dashboard we will discuss about FTX and what happened to impact this price loss, with charts and twittes till now nov 9 FTT price losses arount 70% of its value, lets scoop the dashboard:

• FTT Token price
• FTX Users wallet balance
• FTX users withdraw volume
• FTX outflow numbers
• Destination of this outflows

What is Binance?

==Binance is a cryptocurrency trading exchange founded by Changpeng Zhao==. The company was initially based in China but relocated to the Cayman Islands after increased Chinese regulation threatened its business. Binance quickly became one of, if not the largest crypto trading platforms in the world with its extensive list of trading pairs and relatively low fees compared to competitors. The site's initial lack of KYC (know your customer) restrictions were also appealing to some, though it has since added many KYC measures.

Fast Facts:

• Binance (BNB) is one of the worlds leading crypto exchanges.

• The Binance exchange launched the Binance Coin in 2017 as an ERC-20 token on the Ethereum blockchain. It was a utility token that allowed users of the exchange to pay less in fees if they used the token for transactions.

• Binance Coin was then moved to the Binance Smart Chain when it was released in September of 2020.

• The Binance Smart Chain is a smart contract-enabled blockchain network created with the goal of creating a decentralized financial (DeFi) ecosystem.

• The Binance Smart Chain operates using a Proof-of-Authority consensus mechanism.

• The founder of Binance, Changpeng Zhao, once called the Binance Smart Chain CeFi (centralized finance), or CeDeFi, in a since-deleted tweet.

• Given the control that the Binance exchange has over the Binance Smart Chain, it's hard to distinguish assets issued on it from securities, including BNB.

  See full article at What is Binance by Luke Conway

Appendix

• Using Flipside data tables:
  • Ethereum.core: To get info about the bridges and tokens price.
  • Solana.core: To get info about:
    • Swaps.
    • CEX
    • Alameda & FTX.
• Thanks to JackTheGuy & alik110 for their amazing dashboards of this incident, which help me to wrote this dashboard.
• Credits also in their respective SQL.