Increased holdings of FTT, the portfolio changed from 82 to 83 altcoins! Not constituting investment advice (pure speculation), due to the FTX incident leading to the bottom of the bear market, Binance took the lead in issuing proof of reserves, and other exchanges followed suit, making the industry more regulated. Next, let's discuss the background of the FTX incident.
Stage One: Questioning Financial Fraud. The incident originated from a CoinDesk report, which indicated that Alameda's largest single asset and a large amount of collateral were both FTT, with Alameda's balance sheet showing as much as $6.112 billion in FTT tokens issued by FTX. Alameda CEO Caroline Ellison declined to comment on CoinDesk's report, and FTX did not respond to requests for comments. This report sparked panic in the crypto community.
Stage Two: Influencers Pulling Strings.
On November 6, Binance co-founder He Yi stated: "Binance does not provide unsecured loans, does not participate in trading, does not blindly buy companies, does not spend money frivolously, 20% of FTX's equity has already been sold, keep your head up and work hard."
Subsequently, CZ tweeted that as part of Binance's exit from FTX equity last year, Binance received approximately $2.1 billion in cash equivalents (BUSD and FTT). Due to recent exposed information, Binance decided to liquidate all remaining FTT on our books.
FTX founder SBF refuted rumors stating, "A bunch of baseless rumors have been circulating, FTX's finances have been audited, although it may slow down product speeds at times, it has made FTX highly regulated. FTX has processed billions of dollars in deposits/withdrawals today, and there are also a large number of exchanges between dollars and stablecoins ongoing."
Stage Three: Users Rush to Withdraw Funds, Leading to a Bank Run.
On November 7, 2022, on-chain data from Dune showed that FTX raised 337,000 ETH that day but then saw a large withdrawal of 495,000 ETH, approximately $297 million. From the subsequent graph, it can be seen that after the 8th, FTX was already unable to raise funds to cope with the bank run.
Stage Four: Acquisition Fails, FTX Ultimately Faces Consequences. On November 9, 2022, CZ tweeted claiming that FTX sought help from Binance and signed a non-binding letter of intent for purchase.
On November 9, 2022, at 01:27, Coindesk published again, stating that Binance's acquisition of FTX could trigger anti-monopoly laws in various countries, making it highly likely that the acquisition would not be completed.
Stage Five: Application for Bankruptcy Protection.
Cryptocurrency exchange FTX announced on Friday (November 11) the initiation of bankruptcy protection proceedings in the US, and FTX founder and president Sam Bankman-Fried has resigned.
Stage Six: Compensation Begins.
FTX launches $16 billion distribution to creditors, the distribution timeline is as follows: starting in January 2025, no later than March 2025.
Thus ends the entire incident, after experiencing this event, a reserve fund was established led by Binance, and various exchanges have also introduced reserve funds, making the industry increasingly standardized and ensuring users' funds are safer. Many thanks to CZ for his contributions to the industry!!
Below is my screenshot of increased holdings, not constituting investment advice.
#FTX赔偿计划 #实盘交易 #FTX重启，那么它会成为这轮牛市第二波助推剂，越来越多的积极因素在累积，一轮波澜壮阔的行情指日可待。
