FTX Denies Insolvency Fears
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An editor at Coincrop
08 Nov 2022 | 3 min read
n Tuesday morning in Asia, investors were gripped with fear over another 'Three Arrows' event, this time involving FTX and its hybrid investment fund/market maker Alameda Research. As a result, FTX's exchange token FTT plummeted nearly 20%.
CoinGlass reported that short interest is still increasing FTT as open interest has grown 8% during the last hours to reach a total of $215 million. This problem for Sam Bankman-Fried's FTX started after CoinDesk let everyone know that a large section of Alameda's balance sheet was made up of SOL token and FTT.
Since then, the market has grown more concerned about FTX's liquidity issues. Data from Nansen shows that during the past week, $451 million was pulled off its main platform in the form of stablecoins, and $15 million was withdrawn from its U.S.-based subsidiary.
At present, FTX holds $59.2 million in USDC stablecoins and $28.5 million in USDT tokens, along with a smaller sum of $8.6 million in BUSD coins. Its American counterpart boasts a larger amount of funds available: $41 milliom USDC, |$12.8m, $39m PAX and $11m BUSD.
Despite reports of delays in withdrawing fiat currency, FTX is still processing them and CEO Sam Bankman-Fried has stated that the exchange is nowhere near insolvent. In a Twitter post early Monday morning, he also said that there was no risk of withdrawals being halted.
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