Fall of FTX and Alameda. Black swan in the cryptocurrency market

Changpeng Zhao announced his exit from investments in FTXin the amount of $2.1 billion and the sale of FTT tokens in the amount of $600 million within 1-2 months on the open market. After this, FTX, the world's No. 2 cryptocurrency exchange, goes into a death spiral. Let's figure out what happened:

Sam Bankman-Fried, head of FTX, has been under fire for weeks for taking a proactive stance towards regulating cryptocurrencies (turned the DeFi segment against itself) and lobbying their interests throughthe political circles of Washington (turned Changpeng Zhao and Binance against themselves, for whom the road there is closed). The formal reason for Zhao's exit from FTX was the information that appeared on Twitter earlier that almost half of Alameda Research's assets (led by Freed and a source of income for FTX) are not secured by anything: $14.6 billion of assets against $8 billion of real funds, and 2 billion of collateral are secured by the FTT token, which is printed by the exchange itself.

After that, FTX experiences a banking panic (mass withdrawal of funds by clients): more than 1 billion withdrew from FTX, the FTT exchange token collapsed by more than 20%, followed by many other tokens (Solana especially got it, 10% of whose tokens are on the balance sheet of Alameda), now the withdrawal of funds from the exchange is limited to $1000.

Total:
1. The need to massively sell off assets to pay Binance crashes the market;
2. The amount withdrawn from the exchange in the last 2 days corresponds to the entire FTX revenue for 2021;
3. Goodbye reputation Frida.

This play is not finished yet, but she contributedserious adjustments in the crypto market are a black swan that outweighed the influence of technical analysis and macroeconomics. If FTX and Alameda do not have good crisis managers, then we will see very low prices for almost the entire range of altcoins. It is interesting that Frida was overtaken by karma - Alameda is accused of a dirty game and the destruction of many projects. And very good timing - straight to the Senate elections, where the Republicans are likely to win (Fried is a well-known donor to the Democrats)

Follow current analytics in our Telegram