{"id":14329,"date":"2022-11-07T14:31:53","date_gmt":"2022-11-07T14:31:53","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftt-price-falls-amid-liquidation-claims\/"},"modified":"2022-11-07T14:31:53","modified_gmt":"2022-11-07T14:31:53","slug":"ftt-price-falls-amid-liquidation-claims","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftt-price-falls-amid-liquidation-claims\/","title":{"rendered":"FTT price falls amid liquidation claims"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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FTT price has dropped by more than 12% in the past seven days following some issues with a leaked Balance Sheet of FTX\u2019s sister firm Alameda Research.<\/p>\n

In particular, the leaked balance sheet showed an imbalance in Alameda\u2019s financials and triggered fear among investors who have been withdrawing funds including stablecoins from FTX at an alarming rate.<\/p>\n

Stablecoins worth more than $451 million have been withdrawn from the FTX exchange in the last seven days according to Nansen data.<\/p>\n

What the leaked Balance Sheet showed<\/h2>\n

The leaked Balance Sheet showed that Alameda Research has $14.6 billion in assets and about $8 billion in liabilities including $7.4 billion worth of loans as of June 2022. Out of the listed assets Alameda owns $3.66 billion in \u201cunlocked FTX token (FTT)\u201d and $2.16 billion in FTT tokens as collateral.<\/p>\n

Besides the imbalance, investors also fear that a huge portion of Alameda\u2019s asset holdings is in FTT tokens rather than traditional assets like fiat<\/a> currencies.<\/p>\n

Alameda\u2019s CEO Caroline Ellison later clarified via a tweet<\/a> that the leaked balance sheet only showed part of the firm\u2019s holding saying that Alameda has an additional $10 billion in assets. However, the clarification did not quell market responses and investors\u2019 fears.<\/p>\n

Binance planning to liquidate a huge sum of FTT tokens<\/h2>\n

Binance received $2.1 billion worth of BUSD stablecoin and FTT tokens when it exited from FTX equity in 2021. Changpeng Zhao, the CEO of Binance<\/a>, has said that Binance is planning to liquidate a large sum of FTT tokens (more than $500 million worth of FTT) on the market.<\/p>\n

For more details on Binance\u2019s FTT token liquidation, you can read this: \u201cIs FTX insolvent? Why is Binance selling FTT? \u2013 Deep Dive.<\/a>\u201c<\/p>\n

The increased stablecoin withdrawals and the impending FTT liquidation by Binance are expected to drive the price of the FTX token lower and investors are betting against the token.<\/p>\n

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