Alameda Research is on the brink of insolvency.

For several days, we have been seeing and hearing the news of the decline of Alameda Research and, consequently, FTX in social media and crypto communities. Many even say that what happened to LUNA is going to happen to Alameda Research and FTX. But how true are these news and analysis? Is Alameda Research really dying? This issue has been investigated in this dashboard. But it is better to familiarize yourself with Alameda Research and FTX exchange before doing anything.

The charts below show where the coins entered FTX and where they were transferred. Binance has a larger share of coin transfers on a daily basis. More than 50% of all stablecoins transferred from FTX on the Ethereum network have been transferred to Binance, with coinbase coming in second with approximately 15%. It may not be without reason that there are rumors about the purchase of FTX by Binance.

Analysis on the Solana Network

In Solana, the withdrawal process from FTX is much more evident. Since only two stable coins USDC and USDT are traded in the Solans network, I have limited the results to these two coins. On November 7th, an unprecedented amount of stable coins with an approximate value of 668M USD was withdrawn from FTX. Of this amount, 623M USD was related to USDC and 45M USD was related to USDT. In general, more than 80% of stable coins transferred from FTX are related to USDC. In the accumulation charts, we can clearly see the difference in the volume of stable coins withdrawn from stable coins entered into FTX. Liquidity drop in Solana network is very high.

In the charts below, we can see where Solana network stable coins were transferred to FTX and where they were transferred from FTX. As it is known, more than 60% of the stablecoins of the Solana network have been transferred from FTX to gate.io, and coinbase ranks second with nearly 26%. It can almost be said that until October, coinbase had a larger share of stable coins transfer, but as we can see in the daily chart, the share of gate.io has increased a lot since October.

Conclusion

As we have seen, since November 7, a large amount of stablecoins have been transferred from FTX to other exchanges, both in the Ethereum network and Solana network. The largest volume of stablecoins in the Ethereum network have been transferred to Binance and in the Solana network to gate io. This amount of withdrawal has caused FTX to face a severe liquidity problem and the price of its exclusive token, which is called FTX Token (FTT), has decreased by more than 80%.

Written by Mehdi Marjan

Contact With Me

Discord: Mehdi#9668

Twitter: @aghayemarjan

Email: m.meh71@gmail.com

What is FTX?

The FTX exchange was originally developed by Alameda Research. The company manages $100 million worth of digital assets and is one of the top market makers for BitMEX, OKEx and other derivatives exchanges.

Despite the bad name that FTX gained at the beginning due to its advanced trading products and special derivative contracts, in August 2019, by announcing an increase of $8 million in funding for several venture capital institutions, FTX was able to establish itself in other areas of the currency derivatives market. Digital fix. The FTX exchange announced in February that it plans to raise funds for these entities through an equity-based token sale, and investors can purchase FTX equity tokens for a minimum price of $250,000 (or at least 125,000 equity token units). to buy All in all, this exchange was able to value around $1 billion through the token sale.

What is Alameda?

In August 2021 billionaire Alameda founder Sam Bankman-Fried promoted the traders to co-CEOs so he could focus on his FTX cryptocurrency exchange. By charging basis points on $5 billion volume a day the quantitative trading firm makes about $3-4 million daily. By investing that income into blockchain platforms like Uniswap and Compound that connect lenders and borrowers with little overhead, Alamada generates an additional 7% to 50% annualized depending on the asset.

What am I supposed to do?

According to the explanations given so far, it is clear what exactly FTX is. The purpose of this analysis is to check the volume of stable coins that have entered or exited FTX and see if the output volume of tokens is significant or not. I also specify which exchanges these tokens came from and which exchanges they went to.

Here I have checked all the data from last 90 days. Also, the relevant results have been analyzed in both Ethereum and Solana blockchains.

Getting Started

I will start my work by comparing the value of FTT token.

FTX Token (FTT) is a utility token that provides access to the FTX trading platform's features and services. It is also the native token of the FTX ecosystem. It creates utility in the FTX ecosystem by incentivizing users to hold and use the token.

The FTX Token price has dropped drastically. As you can see from this image which was taken from coinmarketcap, we can see that the price of this token has reached 5 USD while yesterday its Price was almost 22 USD. In the following, we can see that this fall in the value of FTX Token was due to the decrease in the liquidity of the FTX exchange.

Analysis on the Ethereum Network

The table and graphs below show the total volume of stable coins imported into and out of FTX daily and cumulatively on Ethereum Network. As we can see, on some days the imported volume is more than the outgoing volume and vice versa. But in recent days, especially on November 7, the volume of withdrawals has increased sharply. These extreme peaks have made it possible to see the increasing trend of stable coins in the accumulation chart. In these 90 days, approximately 65B USD has entered FTX while approximately 65.7B USD has exited FTX. The same difference of approximately 700M USD of tokens withdrawn compared to tokens entered is one of the signs that strengthens the hypothesis of FTX bankruptcy.

We also see that most of the withdrawals were related to USDC. In the last 90 days, more than 63% of all stable coins withdrawn were USDC.