Justin Sun said he will burn the tokens from holders on FTX and swap them into his Huobi exchange 1:1. Then later FTX confirmed this with this tweet https://twitter.com/FTX_Official/status/1590763245488713729Now there is a crazy premium on the exchange. Basically you are losing 80-85% of your assets.Price before this premium was like $0.05 and now its $0.30 on FTX. I remember Bitfinex at least had a 30% haircut when they got hacked back in 2015, but 80% haircut is just crazy. Maybe its a trick, so if everybody buys this token at a 80% loss, then FTX liabilities reduce by 80% and they solvent again? Very very shady stuff.... |
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Now there is some agreement with Justin Sun to swap the TRX,BTT,HT tokens. And FTX confirmed this, however...
You are taking a 80% loss because the price to buy TRX on FTX is $0.30 and its value on another exchanges is $0.05. Its peak was like $0.15. So you either risk the rest of your funds and wait or take a 80% loss now.
Rediculous
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Discuss the events from the photos below.    It couldn't of been this easy? Could it?
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But you need to realise the sentiment right after. People lost tons of money with Luna, with 3AC, with Celcius, Voyager, etc. Now with FTX. Many are pissed off at crypto and they are just quitting and getting out. Its not good for adoption.
After this, even if prices don't dip. The retail adoption will be gone. They will most likely go back to stocks since at least with a stock broker, you can lose money on your investments BUT never on any cash you hold on the exchange. With crypto people lost money with investments which went down 90% and they lost 100% of their deposits which were in cash.
That and there is going to be more regulation from governments after this mess.
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The CEO finally replied, https://twitter.com/SBF_FTXBasically appologizing and saying he screwed up. Saying he made many mistakes and one was with the under-assumption of the max daily withdraws which led to this liquidity crunch. FTT reached $4 during his tweet. And todays CPI was good, if it wasn't for him, btc would be most likely at $25K right now. |
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They really need to disable trading on the exchange. Many of the pairs don't match prices with other exchanges. The ETH and BTC Perps pair are trading a huge premiums. No idea why people are wasting their time trading on there right now. Its like with monopoly money or trading demo pretty much.
And people are still sending deposits. They need to send out an email explaining this situation. Not everybody goes on Bitcointalk or Reddit or Twitter. Some guy sent $250,000 and another $160,000 in the last 4-5 hours or so.
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I think a lot of people had money on FTX. Many withdrew partially because they assumed it was FUD. Many didn’t withdraw anything at all.
I remember a few months ago there was speculation that Kucoin was insolvent. Turned out to be FUD and people assumed the same.
Even many experienced traders left funds at FTX. We all got burnt.
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Binance refused to buy FTX after looking at the books.
Something like >9Billion in losses.
Marketing is continuing to sell off as a result of this news.
Guy had like +40B about a year ago and now look at him.
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People are shorting SOL on many futures exchanges like Bybit and there is a CRAZY 25% price different. We got $11 on Bybit futures and $14 is the real spot price.
People are basically longing on FTX and if SOL goes bust, they make money on the other exchange and hedge their way out.
Looking at the crazy 5% daily funding rates.
Everyone is getting very desperate not to leave any funds on FTX.
Sad! Stay safe.
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See the thread I created about exchange wars.
Basically due to a leaked document on Coindesk, it turns out FTX/Alamada was heavily leveraged using FTT as their collateral. When Binance CEO tweeted they are selling their FTT, it created alot of panic.
At first it was fine but eventually there was too much selling and Almada pulled the bids and then everything tanked. Their largest holding was SOL and hence why it crashed below $20. And other assets started to crash like BTC and ETH.
Now there is panic and hate everything and people are just bailing out of crypto. First Celcius, Voyager, bunch of Defi hacks, 3AC, Luna, people are hurt and they are leaving crypto forever most likely. And will stay out of investing for the time being.
Not looking good.
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Yeah I didn't get a chance to withdraw everything. I had a small account and had the $2000 limit. Nothing I can do now.
Perhaps degen trade 100x on two different exchanges and try to lose everything on FTX and gain the same amount on the other exchange.
For the last 12 hours. No outgoing transactions.
What is strange is that the exchange is still functional, why? Why trade on the exchange or market make when you can't withdraw anything. Also FTT is $5-6, it should be $0.
So 50/50 whether I will ever see those funds again.
Oh well.
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As of 3 hours... withdraws have stopped.
Only deposits are going to their hot wallet and nothing coming out. No idea how their bitcoin hot wallet is doing but their hot wallet for ETH and ERC20 is not sending any withdraws.
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The FTT $22 peg just broke and all hell's gone lose.
They are sucking the liquidity out of BTCUSD and ETHUSD also. Site is lagging like crazy and can't navigate it.
This peg breaking is similar to the $6000 peg that broke back on November 14 2018.
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My understanding of the situation:
FTX lobbied for a DEFI kyc requirement > looks like those crypto players in power in return want to shut them down and seem successful so far. FTX/Almeda inflated their balance sheet with their own tokens, going to be interesting weeks.
Yes this is the reason. Nobody in the crypto space was happy about what SBF did. However CZ looks like he is looking for blood. Instead of just taking the $22 offer for the FTT, he promised to TWAP it over a 6 month period. However if you look at the FTTBNB chart, there is massive amount of dumping since in the last few hours. Seems like he wants to break the peg and cause pain. There is speculation already that they are selling their holdings of SOL just to keep the $22 peg safe. Right now there is even a 10 cent premium between Binance and FTX for FTT-Token. Looks like it might get ugly. Reminds me of CSW vs Ver from 4 years ago. And poof the $6000 bitcoin support broke. |
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Right now there is the battle of $22.
Seems that there is dumping on Binance and there is buying on FTX.
Caroline from Alameda offered to buy all Binance's FTT at $22 and seems there is a huge battle going on right now. If you track CVD you can see that on Binance there is nothing but market sells and on FTX there is nothing but market buys.
Price completely side ways its crazy. And a few mins ago, tons more FTT was deposited into Binance to market sell.
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From what I understand. Apparently they use FTT as collateral on many different exchanges and Defi. The reason they don't sell FTT but use as collateral is so they don't pay capital gains tax on the tokens.
So they borrow it from FTX, use a collateral to market make and such.
Hence it seems that they might have $5B in liabilities for Alameda but $5B in assets for FTX, so it cancels each other out. Another issue is that it seems that FTT is owned 98% by Alameda pretty much. Many only own 25 FTT just to get the free maker fees on FTX but majority is owned by them.
So far they are still processing withdraws. Maybe $50M per hour or so.
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Been watching those hot wallets for the past 24 hours and it seems they are processing probably over $1B worth of withdraws so far and they still haven't ran out of funds. Their hot wallet is almost 50% empty however they moved alot of funds around to refill their other wallets for USDC, USDT, so I am guessing that maybe >75% of all their client assets have been withdrawn.
Wondering if they will recover from this. This was the top #2 or #3 exchange in terms of volume and I predict it will be closer to #10 spot after this. I think people don't want another Celcius issue.
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I think he is referring to those which were flipping properties between 2020 and 2022. People would basically buy a property, do little work and sell it for 20% more.
Housing market was hot and every month the property values were going up. So it seemed to be risk free. It was until interest rates started to go up and now many are holding the bag.
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No idea if you guys were paying attention but there is a huge fued going on with FTX and Binance. Basically some insolvency rumors and Binance dumping their FTT token coin.
We came close to breaking the yearly low earlier with that CZ tweet. It seems people are upset about SBF trying to make Defi illegal and many are out to get him. No idea how this will unfold. Many people leaving FTX now.
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