"crypto feud” between Changpeng ‘ Zhao (CZ) and Sam Bankman-Fried (SBF) took a turn for the worse on Nov. 8 — culminating in the biggest bull trap in recent memory.
Since Nov, 6, when CZ tweeted Binance’s intentions to offload its holdings of FTT tokens, 152.6 milijardi $ has left the crypto market resulting in huge drawdowns in token prices.
The tweet raised questions about FTX’s solvency, which, given its standing and willingness to save Terra LUNA bankrupted CeFi platforms, presented a somewhat implausible scenario.
UpOnly TV host Coby commented that the speed at which the situation developed caught out many “long-term and smart crypto ppl” who were none the wiser regarding what was happening behind the scenes at FTX.
“In my decade of crypto, think this exchange rug is by far the worst ever. Almost no time to react and lots of long-term and smart crypto ppl impacted by it."
Scale of FTX blackhole unknown at this time
On Nov. 8, CZ tweeted that FTX had reached out to Binance for help and a non-binding agreement was made to buy the company, subject to satisfactory due diligence.
Danas popodne, FTX je zatražio našu pomoć. Postoji značajan pad likvidnosti. Kako bismo zaštitili korisnike, potpisali smo neobavezujući LOI, s namjerom da ga u potpunosti preuzmemo https://t.co/BGtFlCmLXB i pomoći u pokrivanju krize likvidnosti. U narednim danima ćemo provesti kompletan DD.
- CZ 🔶 Binance (@cz_binance) Novembar 8, 2022
Before that point, SBF had publically maintained everything was fine. Although on-chain data showed a “bank run” on holdings, many assumed FTX was sufficiently liquid.
According to Wall Street Journal reporter Liz Hoffman, before the agreement with Binance was struck, SBF was asking Silicon Valley and Wall Street billionaires for help.
This a.m. before securing an emergency lifeline from rival Binance, FTX was canvassing deep pockets in Silicon Valley and Wall St — think billionaires, not institutions — ppl familiar told me & @lmatsakis @SaacksAttack. Two of the ppl he he was seeking more than $1bn.
— Liz Hoffman (@lizrhoffman) Novembar 8, 2022
Currently, other than general comments on insolvency and irresponsible investment strategies, the full details of FTX’s woes are not known.
Generalni direktor Coinbase Brian Armstrong, when asked if his exchange would buy FTX, said:
“There [are] reasons why that would not make sense.”
Armstrong je dodao:
“[I am] not quite at liberty to share the details right now.”
Najveći gubitnici
Over the last 24 hours, out of the top 100, FTX’s native FTT token fared the worst, down 74% to bottom at $2.76. In comparison, FTT started the day at $22.23.
Next, Solana lost 35% of its value over the same period. Support was found at $17.56 in the morning (GMT) of Nov. 9.
Twitter korisnik @immortalcrypto commented that sell pressure was coming from FTX’s investment arm Alameda offloading its Solana holdings to defend the FTT price.
Alameda selling $ SOL kupiti $ FTT because CZ is selling $ FTT kupiti $ BNB.
If next bullmarket someone calls me lucky I’m going to cut his tongue out.
- Inmortal (@inmortalcrypto) Novembar 8, 2022
Aptos fell 30% over the last 24 hours to bottom at $4.34 earlier this morning. APT launched on Oct. 19 and was immediately kritikovana for its poor scalability on launch, token distribution favoring VCs, and ties to Meta.
In July, the project raised $ 150 miliona in a series A funding round led by FTX Ventures, with Andreessen Horowitz, Multicoin Capital, and Circle Ventures participating.
Source: https://cryptoslate.com/biggest-losers-ftt-sol-apt-tank-over-ftx-insolvency-woes/