Crypto

Investors Think Alameda Is Pulling Cash As Crypto Market Plunges

  • FTT price lost its critical support at $21.6 on Monday to fall to $17.9.
  • The ongoing controversy between Alameda and FTX escalated following Binance’s decision to sell its FTT stake.
  • The constant panic selling has led the crypto community to label the current situation as a possible bank run.

FTT price noted further decline on Monday after Alameda’s balance sheet controversy escalated following comments from Binance CEO Changpeng Zhao and Sam Bankman-Fried (SBF). Along with the FTX exchange token FTT, Solana’s price noticed a massive drop on November 8th.

Adding liquidity to FTX and Alameda woes

Many traders are speculating that Alameda, FTX’s sister company, may withdraw liquidity on FTX pairs.
Hsaka, a well-known trader and influencer, tweeted the possibility of Alameda pulling liquidity for spot pairs.

The FTX exchange’s native token, FTT, appears to be in freefall, registering a 38% drop in the past 48 hours. Solana, another token closely associated with SBF, fell 32% over the same period.

Percent change FTT, SOL, BTC, ETH

The controversy between CZ and SBF continues

While the CoinDesk revelations came about a week ago, most of the market only reacted after tweets from Binance CEO CZ. CZ mentioned that his company would sell all of its FTT stakes, further justifying the move as risk management. He tweeted,

“Liquidating our FTT is just a risk management after the release, learning from LUNA. We have already given our support, but we will not pretend to have sex after the divorce. We are not against anyone. But we are not We will not support people who lobby against other industry players behind their backs.

Regardless, FTX CEO Bankman-Fried continues to reassure the community that FTX and all of its assets are doing well. He called on CZ to work together for the crypto community.

Although the billionaire is reassuring investors about balance sheet issues, investors are already panicking as they sell their holdings. If this story continues to develop in the direction it is going, crypto markets could see the third biggest implosion after Terra-Luna, lending platforms and Three Arrows Capital.

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#Investors #Alameda #Pulling #Cash #Crypto #Market #Plunges #Crypto

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