{"id":14716,"date":"2022-11-22T19:32:05","date_gmt":"2022-11-22T19:32:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/onchain-research-shows-ftxs-falling-btc-eth-stablecoin-balances-suggest-cracks-had-formed-as-far-back-as-june-bitcoin-news\/"},"modified":"2022-11-22T19:32:05","modified_gmt":"2022-11-22T19:32:05","slug":"onchain-research-shows-ftxs-falling-btc-eth-stablecoin-balances-suggest-cracks-had-formed-as-far-back-as-june-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/onchain-research-shows-ftxs-falling-btc-eth-stablecoin-balances-suggest-cracks-had-formed-as-far-back-as-june-bitcoin-news\/","title":{"rendered":"Onchain Research Shows FTX\u2019s Falling BTC, ETH, Stablecoin Balances \u2018Suggest Cracks Had Formed as Far Back as June\u2019 \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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While the analytics firm Nansen published a report that points to the Terra collapse igniting the flames of FTX\u2019s and Alameda Research\u2019s financial problems, onchain data from the intelligence and research firm Glassnode suggests FTX\u2019s \u201ccracks had formed as far back as May-June.\u201d Glassnode\u2019s report highlights a \u201cgrowing pool of [onchain] data\u201d that shows FTX\u2019s crypto reserves dropped significantly following Terra\u2019s fallout.<\/strong><\/p>\n

Glassnode Report Highlights How FTX\u2019s Bitcoin, Ethereum, and Stablecoin Balances Dropped Significantly Following the Terra Ecosystem Implosion<\/h2>\n

There\u2019s been a lot of eyes focused on the \u201cFTX Accounts Drainer<\/a>\u201d address as the unknown entity has been offloading significant amounts of ether to this very day. Furthermore, FTX\u2019s bitcoin (BTC<\/a>) wallet held 20,176.84 bitcoin on Nov. 5, 2022, and the BTC<\/a> that\u2019s currently worth $326.43 million vanished without a trace<\/a>.<\/p>\n

\"Onchain<\/p>\n

The blockchain intelligence and research firm Glassnode\u2019s weekly onchain newsletter explains that BTC<\/a> reserves held by FTX declined significantly at the end of June. Glassnode also noted that monitoring FTX\u2019s bitcoin reserves was a complex process.<\/p>\n

\u201cTracking the exchange reserves for FTX has been somewhat of a challenge for many data providers over the years, with our own experience being that FTX utilized a relatively complex peeling chain system for their BTC<\/a> reserves,\u201d Glassnode\u2019s onchain newsletter details. \u201cIn April to May this year, the FTX reserves within our cluster had reached a peak of over 102k BTC<\/a>. This dramatically declined by 51.3% in late-June.\u201d Glassnode\u2019s research report adds:<\/p>\n

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Reserves have since persistently declined until reaching effectively zero during this week\u2019s bank run. As claims of Alameda misappropriating customer deposits come to light, this indicates that the Alameda-FTX entity may have in fact experienced severe balance sheet impairment in May-June following the collapse of LUNA, 3AC, and other lenders.<\/p>\n<\/blockquote>\n

Glassnode: \u2018A Growing Pool of Onchain Data to Suggest Cracks Had Formed as Far Back as May-June\u2019<\/h2>\n

FTX\u2019s bitcoin reserve cache was not the only stash that saw significant declines since Terra\u2019s collapse, according to Glassnode\u2019s report. The researchers detail that in June, FTX\u2019s ethereum (ETH<\/a>) reserves slipped by 55.2% as 576,000 ether left the exchange. When FTX\u2019s financial cracks really started to appear, after Binance\u2019s CEO Changpeng Zhao (CZ) revealed<\/a> Binance was dumping all of its FTT tokens, Glassnode said FTX\u2019s ETH<\/a> balance dropped from 611,000 ETH<\/a> to 2,800 ETH<\/a>, losing 99.5% of its ether reserves.<\/p>\n

\u201cSimilar to the bitcoin balance, this leaves close to no [ethereum] in FTX-owned wallets, with the bank run effectively clearing what was left from the balance sheet,\u201d Glassnode detailed.<\/p>\n

\"Onchain<\/p>\n

Stablecoin reserves, Glassnode said, \u201cstarted to decline significantly from [Oct. 19, 2022], dropping from $725M, to effectively zero over the following month.\u201d FTX\u2019s stablecoin balances reached new highs in June when the crypto economy was in decline, the onchain research report notes.<\/p>\n

\"Onchain<\/p>\n

Glassnode\u2019s newsletter says there\u2019s still a lot of obfuscation surrounding the fall of FTX and Alameda but the onchain data, similar to Nansen\u2019s findings<\/a>, suggests issues started to arise after Terra\u2019s ecosystem imploded. Glassnode researchers conclude:<\/p>\n

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Whilst there remains significant uncertainty regarding what really happened between FTX and Alameda, there remains a growing pool of [onchain] data to suggest cracks had formed as far back as May-June. This would leave recent months as being simply a precursor to what was more than likely an inevitable collapse of the exchange.<\/p>\n<\/blockquote>\n

You can read Glassnode\u2019s weekly onchain newsletter covering the FTX collapse in its entirety here<\/strong><\/a>.<\/p>\n

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Balances FTX<\/a>, Bitcoin Balance FTX<\/a>, blockchain intelligence firm<\/a>, cracks<\/a>, Ethereum Balance FTX<\/a>, ftx<\/a>, FTX collapse<\/a>, FTX Collapsing<\/a>, glassnode<\/a>, Glassnode Research<\/a>, June<\/a>, May<\/a>, Nansen<\/a>, Onchain analysis<\/a>, Onchain data<\/a>, Stablecoin Balance FTX<\/a>, Terra<\/a>, Terra collapse<\/a><\/div>\n<\/div>\n

What do you think about Glassnode\u2019s onchain analysis of all the bitcoin, ethereum, and stablecoins that left the FTX platform following Terra\u2019s collapse? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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