These four key charts shed light on the dramatic collapse of the FTX exchange

Speculation around Sam Bankman Fried’s FTX crypto exchange has become so intense that the company has agreed to sell itself to its biggest rival Binance. Blockchain data offers a fresh perspective on FTX’s liquidity crunch, illustrating how the drama escalated so quickly.

Top 10 FTX Reprocessors for All Portfolios

Understanding why Binance agreed to buy FTX today means understanding FTX’s liquidity issues.

One of the first red flags came from the top 10 addresses in withdrawal volume on FTX. These addresses, which include Nexo, Circle and Jump Trading, withdrew $1.87 billion in the past seven days, according to Nansen data.

Nexo, a crypto lending platform with over five million users worldwide, as shown on the company’s homepage, has withdrawn over $408 million worth of ether (ETH) from FTX. Blockchain explorer website Etherscan confirms Nansen’s data with Nexo transferring ETH in large volumes through multiple transactions. Here are several Nexo off-FTX transactions with values ​​of at least 4,999 ETH: Tx1, Tx2, Tx3, Tx4, Tx5, Tx6, Tx7, Tx8, and Tx9.

Market participants also withdrew $121 million USDC from FTX to Circle’s deposit contract address, according to data from Nansen and Etherscan. (Nansen shows that $1.15 billion USDC has left Coinbase in the past 24 hours, reflecting users withdrawing tokens from exchanges.)

Data from Coinglass reveals that over the past 24 hours, the number of bitcoins on FTX has fallen from 19,941.64 BTC to 36.14 at press time.

Release of stablecoins

The understanding of volatility resulting from the FTX drama continues with stablecoin releases. According to data from Nansen, over the past seven days starting Monday, November 7, FTX has led all trading in stablecoin releases. Some $451 million worth of stablecoins left FTX, more than the combined outflows of KuCoin, Crypto.com, and OKX.

Specifically, FTX’s holdings of USDC and USDT fell dramatically. Between Friday, November 4 and Tuesday, November 8, data from Nansen indicates that FTX’s USDC holdings fell by around $137 million, or around 84%, while its USDT holdings fell by around $198 million. dollars to $68 million.

According to CryptoQuant, FTX’s stablecoin pool currently stands at around $156 million, down more than 78% since October 24.

FTX’s stablecoin pool is at its lowest level in a year. Some market participants grew concerned as one of the first signs that Terra Luna was collapsing was when UST deposits on the Anchor lending protocol began to drop rapidly.

Top 10 “smart money” FTX retreaters

Additionally, prolific and active cryptocurrency traders have moved their wealth out of FTX, according to data from blockchain analytics firm Nansen. In the last 24 hours, the top 10 withdrawal wallets classified by Nansen as “smart money” withdrew approximately $246.6 million worth of tokens.

Nansen considers a wallet to be “smart money” if it meets at least one of several tests, including:

  • He is known to belong to an investment fund.
  • He has earned at least $100,000 by providing liquidity to decentralized finance (DeFi), SushiSwap and Uniswap protocols, excluding so-called impermanent losses.
  • It is among the top 300 addresses ranked by profits made, considering only on-chain transactions that took place on decentralized exchanges (DEX).

Jump Trading, which focuses on building ecosystems, quantitative research and trading, pulled in $118 million, more than the next six addresses combined.

Other notable smart money pulls include asset management company Arca and SBF trading company Alameda Research. Alameda Research transferred 92 million BIT (about $35 million) out of FTX to their own address.

FTT price and volume

The chart above shows the daily price and volume of the FTT token of the FTX exchange, which grants holders a discount on trading fees on the FTX market. Following the CoinDesk disclosure on Nov. 2, FTT recently fell around 79% as its volume increased significantly.

The chart data only covers volume on the FTX exchange, so it may not cover the entire FTT trading volume on all exchanges. The chart shows that the recent revelations sparked a flurry of interest in the token, and the drop in FTT was accompanied by a major price discovery.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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