Protocols Involved In FTX Crash and Recovery Plan: CZ? Justin Sun?

By ☑️0🆇D̺͈͙͕̿ͧ̑ͣ🅰🆅🅸🅳eͤ | Darknet | 10 Nov 2022

I have already talked about the insolvency of FTX, let's retrace the phases (it's better than a film!) and see possible impacts and future developments. I point out that FTX US works smoothly and hasn't had any problems with withdrawals and trading. FTX Address:

FTX US: Etherscan
FTX Exchange: Etherscan
FTX Exchange 2: Etherscan
Blockfolio (app): Etherscan

Hystory:

1) On November 2, the Coindesk portal leaked that about $ 6 billion (of the total of $ 14.6 billion) of Alameda is in the FTT, SOL and its tokens assets. Much of the balance sheet is highly illiquid (cannot be sold for liquidity as it is vested or blocked as collateral)

2) On November 6, CZ (Binance) claimed on Twitter that it is selling around $ 23 million in FTT due to the Coindesk report. FTT's price started to drop after the tweet and stabilized near $ 22 after Alameda CEO Caroline replied that Alameda is willing to buy OTC for $ 22. CZ said he was not interested.

3) November 8, a rumor claimed that FTX had sold $ 100 million BIT and other tokens held to replenish cash, the news further triggered mass panic in FTX's bankruptcy and led to a drop in the price of FTT as well. for $ 16/17.

4) In the afternoon of November 8, several hot wallets on FTX seem to no longer perform withdrawals, panic is generated. FTT is wrecked at $ 14 and continues to bring down the entire market.

5) November 9, Sam (CEO of FTX) and CZ tweeted simultaneously to express that FTX and Binance have reached a non-binding agreement: Binance will acquire FTX to help exchanges cope with the liquidity collapse. FTT bounces above $ 20, BNB touches $ 400; BTC and ETH also returned to the $ 20,000 and $ 1,450 levels respectively.

6) November 9, a few hours after the 2 announcements, the US Commodity Futures Trading Commission said it is overseeing Binance's acquisition of FTX. There are rumors suggesting that the acquisition could result in a major loss of FTX's former investors and could violate each country's antitrust laws. These rumors suggest that the deal will not be completed. Sam says over $ 6 billion was withdrawn in 2 days, withdrawals are suspended indefinitely.

7) CZ announces that the agreement has been skipped and the acquisition will not be completed. This series of plots has led to a further collapse of the market, with FTT prices, so far, dropping below $3, BTC to the low $15,000 and ETH dropping below $1,150. The number of stablecoins in FTX's wallet has decreased by more than 85%, with a value currently under $ 200 million.

8) November 10, Tron's Justin Sun and FTX's Sam hint that they are working to rehabilitate trading on TRX and its tokens (BTT for example) and later withdrawals. Unconfirmed deals with the Huobi exchange are also leaking. CEO Sam also spoke of a fundraiser.

IMPACTS FROM THE POSSIBLE FTX BANKRUPTCY
Direct impact will affect the projects in which FTX and Alameda have invested directly and the centralized institutions with which FTX has direct loan and other relationships. At the project level, it mainly involves the major Layer1 and dex chains including Solana, Fantom and Serum (and Bonfida), as shown in the table below, who are the direct victims of the FTX incident.

Main tokens held are:
-FTT (there are no details on any liquidations and loans but being the native token it is the easiest to sell)
-SOL (liquidation risk for most of the dapps on chain; an entity risks a liquidation of almost 90 million dollars of which almost 40 million in SOL token. On November 10, nearly 50 million SOL will be unlocked from staking)
-BIT (they are blocked but could break the deal and sell them)
-MATIC and RNDR (priority sale and easier to perform)
-Sushi (low risk; tokens are in vesting; moreover the price is too low to liquidate it in large quantities on chain)

Indirectly related projects: BitDAO and stablecoin MIM (which is out of peg)

Protocols involved for FTT holdings or with money on FTX: Crypto.com ($ 10 million exposure, quite irrelevant), Amber Group ($ 77 million blocked on FTX), Kraken (they hold 9000 FTT), Multicoin Capital (they have about 10% above FTX), Selini Capital (they have funds above FTX, about 3%), Wintermute (they have funds above FTX), Sequoia (they have funds above FTX), Anchorage Digital (because Alameda is an investor), Genesis ( counterparty risk), Nexo (due to a small loan).