An analysis of the FTX and Alameda Research collapse has been published by the blockchain and crypto analytics firm Nansen and the report notes that the Terra stablecoin collapse, and the liquidity crunch that ensued, likely started the domino effect that led to the company’s implosion. The study from Nansen further details that “FTX and Alameda have had close ties since the very beginning.”
On Nov. 17, 2022, five researchers from the Nansen team published a blockchain analysis and comprehensive look at the “The Collapse of Alameda and FTX.” The report notes that FTX and Alameda had “close ties,” and blockchain records confirm this fact. FTX’s and Alameda’s rise to the top started with the FTT token launch and the “two of them shared the majority of the total FTT supply which did not really enter into circulation,” Nansen researchers detailed.
FTX and FTT’s meteoric scaling led to Alameda’s swelling balance sheet which “was likely used as collateral by Alameda to borrow against.” Nansen researchers detail that if the borrowed funds were leveraged to make illiquid investments, then “FTT would become a central weakness for Alameda.” Nansen researchers say weaknesses began to show when Terra’s once-stable coin UST depegged and caused a massive liquidity crunch. This led to the collapse of crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius.
While it’s not associated with Nansen’s report, 3AC co-founder Kyle Davies said in a recent interview that both FTX and Alameda Research “colluded to trade against clients.” Davies implied that FTX and Alameda were stop hunting his crypto hedge fund. After the contagion effect from Celsius and 3AC, Nansen’s report says “Alameda would have needed liquidity from a source that would still be willing to give out a loan against their existing collateral.”
Nansen details that Alameda transferred $3 billion worth of FTT on the FTX exchange and most of those funds remained on FTX until the collapse. “Evidence of the actual loan from FTX to Alameda is not directly visible on-chain, possibly due to the inherent nature of CEXs which may have obfuscated clear [onchain] traces,” Nansen researchers admit. However, outflows and a Bankman-Fried Reuters interview suggest to Nansen researchers that FTT collateral may have been used to secure loans.
“Based on the data, the total $4b FTT outflows from Alameda to FTX in June and July could possibly have been the provision of parts of the collateral that was used to secure the loans (worth at least $4b) in May / June that was revealed by several people close to Bankman-Fried in a Reuters interview,” Nansen’s study discloses. The report concludes that the Coindesk balance sheet report “exposed concerns regarding Alameda’s balance sheet” which finally led to the “back-and-forth battle between the CEOs of Binance and FTX.”
“[The incidents] caused a ripple effect on market participants, Binance owned a large FTT position,” Nansen researchers noted. “From this point on, the intermingled relationship between Alameda and FTX became more troubling, given that customer funds were also in the equation. Alameda was at the stage where survival was its chosen priority, and if one entity collapses, more trouble could start brewing for FTX.” The report concludes:
Given how intertwined these entities were set up to operate, along with the over-leverage of collateral, our post-mortem [onchain] analysis hints that the eventual collapse of Alameda (and the resulting impact on FTX) was, perhaps, inevitable.
You can read Nansen’s FTX and Alameda report in its entirety here.
What do you think about Nansen’s comprehensive report concerning the collapse of Alameda and FTX? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Nansen Research, Maurice NORBERT / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
An analysis of the FTX and Alameda Research collapse has been published by the blockchain and crypto analytics firm Nansen and the report notes that the Terra stablecoin collapse, and the liquidity crunch that ensued, likely started the domino effect that led to the company’s implosion. The study from Nansen further details that “FTX and Alameda have had close ties since the very beginning.”
On Nov. 17, 2022, five researchers from the Nansen team published a blockchain analysis and comprehensive look at the “The Collapse of Alameda and FTX.” The report notes that FTX and Alameda had “close ties,” and blockchain records confirm this fact. FTX’s and Alameda’s rise to the top started with the FTT token launch and the “two of them shared the majority of the total FTT supply which did not really enter into circulation,” Nansen researchers detailed.
FTX and FTT’s meteoric scaling led to Alameda’s swelling balance sheet which “was likely used as collateral by Alameda to borrow against.” Nansen researchers detail that if the borrowed funds were leveraged to make illiquid investments, then “FTT would become a central weakness for Alameda.” Nansen researchers say weaknesses began to show when Terra’s once-stable coin UST depegged and caused a massive liquidity crunch. This led to the collapse of crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius.
While it’s not associated with Nansen’s report, 3AC co-founder Kyle Davies said in a recent interview that both FTX and Alameda Research “colluded to trade against clients.” Davies implied that FTX and Alameda were stop hunting his crypto hedge fund. After the contagion effect from Celsius and 3AC, Nansen’s report says “Alameda would have needed liquidity from a source that would still be willing to give out a loan against their existing collateral.”
Nansen details that Alameda transferred $3 billion worth of FTT on the FTX exchange and most of those funds remained on FTX until the collapse. “Evidence of the actual loan from FTX to Alameda is not directly visible on-chain, possibly due to the inherent nature of CEXs which may have obfuscated clear [onchain] traces,” Nansen researchers admit. However, outflows and a Bankman-Fried Reuters interview suggest to Nansen researchers that FTT collateral may have been used to secure loans.
“Based on the data, the total $4b FTT outflows from Alameda to FTX in June and July could possibly have been the provision of parts of the collateral that was used to secure the loans (worth at least $4b) in May / June that was revealed by several people close to Bankman-Fried in a Reuters interview,” Nansen’s study discloses. The report concludes that the Coindesk balance sheet report “exposed concerns regarding Alameda’s balance sheet” which finally led to the “back-and-forth battle between the CEOs of Binance and FTX.”
“[The incidents] caused a ripple effect on market participants, Binance owned a large FTT position,” Nansen researchers noted. “From this point on, the intermingled relationship between Alameda and FTX became more troubling, given that customer funds were also in the equation. Alameda was at the stage where survival was its chosen priority, and if one entity collapses, more trouble could start brewing for FTX.” The report concludes:
Given how intertwined these entities were set up to operate, along with the over-leverage of collateral, our post-mortem [onchain] analysis hints that the eventual collapse of Alameda (and the resulting impact on FTX) was, perhaps, inevitable.
You can read Nansen’s FTX and Alameda report in its entirety here.
What do you think about Nansen’s comprehensive report concerning the collapse of Alameda and FTX? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Nansen Research, Maurice NORBERT / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
Litecoin rallied to a one-week high on Friday, as the token rose for a second consecutive session. The move saw prices climb by close to 8% earlier in the day, and comes as crypto markets mostly traded higher. Uniswap also gained, rebounding from recent losses.
Litecoin (LTC) was a notable gainer on Friday, as the token surged by as much as 8% in today’s session.
Following a low of $60.29 on Thursday, LTC/USD raced to an intraday high of $63.61 earlier in the day.
As a result of today’s rally, litecoin moved close to a key resistance level, hitting its highest point since last Friday in the process.
Looking at the chart, prices did not yet collide with the aforementioned ceiling of $64.00, which was last broken ten days ago.
This comes as the 14-day relative strength index (RSI) hit a key resistance level of 57.00, leading earlier bulls to abandon their positions.
As of writing, LTC is now tracking at $62.77.
Uniswap (UNI) rebounded in today’s session, snapping a two-day downtrend in the process.
UNI/USD hit a peak of $6.03 earlier in the day, which comes less than 24 hours after hitting a low of $5.74.
This surge comes as bulls rejected a breakout of a floor at $5.70 on Thursday, with the target now seemingly a resistance of $6.50.
In order to recapture this point, UNI traders will first need to overcome an upcoming ceiling on the RSI indicator.
As of writing, the index is tracking at 45.16, which is under its aforementioned resistance of 48.90.
Bulls will likely need to be cautious, as the momentum of the 10-day (red) moving average appears to still be bearish.
Register your email here to get weekly price analysis updates sent to your inbox:
Could we see a shift in momentum for uniswap this weekend? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
Litecoin rallied to a one-week high on Friday, as the token rose for a second consecutive session. The move saw prices climb by close to 8% earlier in the day, and comes as crypto markets mostly traded higher. Uniswap also gained, rebounding from recent losses.
Litecoin (LTC) was a notable gainer on Friday, as the token surged by as much as 8% in today’s session.
Following a low of $60.29 on Thursday, LTC/USD raced to an intraday high of $63.61 earlier in the day.
As a result of today’s rally, litecoin moved close to a key resistance level, hitting its highest point since last Friday in the process.
Looking at the chart, prices did not yet collide with the aforementioned ceiling of $64.00, which was last broken ten days ago.
This comes as the 14-day relative strength index (RSI) hit a key resistance level of 57.00, leading earlier bulls to abandon their positions.
As of writing, LTC is now tracking at $62.77.
Uniswap (UNI) rebounded in today’s session, snapping a two-day downtrend in the process.
UNI/USD hit a peak of $6.03 earlier in the day, which comes less than 24 hours after hitting a low of $5.74.
This surge comes as bulls rejected a breakout of a floor at $5.70 on Thursday, with the target now seemingly a resistance of $6.50.
In order to recapture this point, UNI traders will first need to overcome an upcoming ceiling on the RSI indicator.
As of writing, the index is tracking at 45.16, which is under its aforementioned resistance of 48.90.
Bulls will likely need to be cautious, as the momentum of the 10-day (red) moving average appears to still be bearish.
Register your email here to get weekly price analysis updates sent to your inbox:
Could we see a shift in momentum for uniswap this weekend? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
PRESS RELEASE. As if the cryptoverse needed more reasons for people to be fearful, both FTX and BlockFi rocked cryptocurrency blockchains and investors alike, sending prices spiraling, blockchains congesting, and investors hunkering down for more ‘crypto-winter’.
But amidst this uncertainty, crypto investors now risk missing out on opportunities while becoming stuck in fear, uncertainty and doubt (FUD).
The EverEarn coin ($EARN) launched on the Binance Smart Chain (BNB) blockchain platform in January 2022 with a simple goal; to show that a new startup cryptocurrency can be run like a business from the beginning, without any false hype or empty promises, while providing increased passive stablecoin (BUSD) payouts, and continue to grow, evolve and expand.
EverEarn Growth While Others are Fearful
Despite recent events, and the global downtrend for the past 8 months, EverEarn has paid out over $2 million in BUSD stablecoin back to holders. The team has maintained daily community voice chats since launch, and a monthly community address. The EverEarn team is now bringing this ‘stick to it’ community mentality and commitment to the Ethereum blockchain and is doing so in a big way.
Ethereum With a Bang
The EverEarn team has amassed almost 60 social media influencers with over 2 million followers along with forming marketing arrangements and development partnerships with EY Studios, Brave Browser, Bitcoin.com, ‘Rug Free Coins’, ‘Mike Tha Investor’, ‘What Coin Talk’, and ‘Crypto Atlas’. Marketing and advertising is being pushed out to millions ahead of the EverEarn Public Presale starting on Nov. 18, 2022 @ 8am EST / 1pm UTC on well reputed UniCrypt Launchpad. https://app.unicrypt.network/amm/uni-v2/ilo/0xB41f93AAF46901d4A6b67791D4723c1388Dcbf3E
But the team hasn’t stopped there; they’ve already obtained two separate audits from ‘Rug Free Coins’ and ‘Solid Proof’, as well as completing two separate identity confirmations (Veriff and iDenfy), along with a FULL TEAM identity confirmation through Veriff.
Multiple Blockchains + Stablecoin Rewards
With the launch to Ethereum (and expected launch to Polygon in December 2022), EverEarn will be providing holders with high ratio stablecoin rewards across multiple blockchains;
All project wallets are blacklisted within the solidity contract, and all future-use tokens are locked within trusted 3rd party launchpad platforms.
During the first 4 weeks of the $EARN ETH launch, ‘diamond hand holders’ (those who do not sell), will earn a chance to split all the stablecoin (BUSD/USDC) amassed within promotion wallets specifically meant to reward those who hold long term.
Public Whitelist Presale Registration: https://www.everearn.academy/whitelist-promotion
Social Media Handles:
Twitter: https://twitter.com/theEverEarn
Telegram: https://t.me/EverEarnOfficial
Website: https://everearn.net
Academy: https://www.everearn.academy
RugFreeCoins Audit: https://github.com/Rugfreecoins/Smart-Contract-Audits/blob/main/ETH%20-%20EverEarn%20Token%20Audit.pdf
SolidProof Audit & Team KYC: https://github.com/solidproof/projects/tree/main/EverEarn
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on ads@bitcoin.com to talk about press releases, sponsored posts, podcasts and other options.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Tony Hawk's Latest NFTs to Come With Signed Physical Skateboards
Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.
Source From : News