Did this Coin Metrics expert reveal the secret to the entire Alameda/ FTX story? Due to the fact that let’s face it, it does not make good sense. Both of Sam Bankman-Fried’s services were incredibly rewarding. FTX was the world’s third-biggest exchange and growing, why would anybody danger eliminating that golden goose? There need to have been a hidden cause. Did this Coin Metrics expert reveal it in the on-chain information? He may have.
The Head of R&D at Coin Metrics, Lucas Nuzzi, ends his thread with a caution: “Essential to keep in mind that this is my own individual highly-speculative take on what occurred based upon these on-chain artifacts.” The case the Coin Metrics expert is making rests on strong on-chain information, however the analysis of what stated information ways is “highly-speculative.” So, take it with a grain of salt and do not walk around stating this is precisely what occurred, since it may not be.
That being stated, yikes!
The Coin Metrics Expert Makes The Case
Lucas Nuzzi begins with a declaration of reality, “I discovered proof that FTX may have offered a huge bailout for Alameda in Q2 which now returned to haunt them.” And after that, he presents a secret. “40 days back, 173 million FTT tokens worth over 4B USD ended up being active on-chain.” Where did those tokens go? You thought it, Alameda Research study. The day was September 28 th. A record-breaking $8.6 B in FTT moved that day.
2/ That day, September 28, over 8.6 Billion USD worth of FTT was moved on-chain.
That was without a doubt the biggest day-to-day relocation of FTT in the token’s presence and among the biggest ERC20 day-to-day relocations we ever taped at Coin Metrics. pic.twitter.com/GnUO1ZcCB7
— Lucas Nuzzi (@LucasNuzzi) November 8, 2022
” That was without a doubt the biggest day-to-day relocation of FTT in the token’s presence and among the biggest ERC20 day-to-day relocations we ever taped at Coin Metrics,” Nuzzi tweeted. What was occurring around Alameda and FTX near that time? Absolutely nothing unique, actually.
- On August 24 th, Sam Trabucco stepped down from the Co-CEO position at Alameda Research study. “I will remain on as a consultant, however otherwise will not continue to have a strong daily existence at the business,” Trabucco tweeted
- On September 27 th, Brett Harrison stepped down from the CEO position at FTX. “Over the next couple of months I’ll be moving my duties and moving into an advisory function at the business,” Harrison tweeted
- This one is the kicker. On September 28 th, Sam Bankman-Fried tweeted, “Directs: turning a couple of FTX wallets today (primarily non-circulating); we do this occasionally. May be a couple of more coming, will not have any result.”
If all of this holds true, that last SBF tweet will most likely make a look in court.
FTT cost chart for 11/09/2022 on FTX|Source: FTT/USD on TradingView.com
So, What Did Alameda Make With The Cash?
Think it or not, the FTT tokens came straight from the initial ICO wise agreement. The Coin Metrics expert “discovered a strange deal that connected with an agreement from the FTT ICO. This 2019 agreement * instantly * launched 173 Million FTT from the token’s ICO.” Weird, however both companies are signed up with at the hip. Then, things took an unusual turn. “Alameda then sent out that * whole * balance to the address of the deployer (developer) of the FTT ERC20, which is managed by somebody at FTX.”
4/ The recipient of the $4.19 B USD worth of FTT tokens was nobody however Alameda Research study!
So what? Alameda and FTX were inherently linked from day 1 and Alameda undoubtedly took part in the FTX ICO.
However what occurred next was intriguing …
— Lucas Nuzzi (@LucasNuzzi) November 8, 2022
WHAT?
The Coin Metrics Expert’s Theory
According to Lucas Nuzzi, Alameda Research study wasn’t unsusceptible to the crypto contagion that afflicted the area in Q2. In reality, the business may’ve exploded with 3AC, Voyager, and Celsius. “It just endured since it had the ability to protect financing from FTX utilizing as “security” the 172 M FTT that was ensured to vest 4 months later on.” That’s an exceptionally dangerous relocation. It nearly appears like FTX didn’t have an option.
8/ The Alameda bailout likely put a damage on FTXs balance sheet to the point where it was no longer solvent.
This would have been great if the cost of FTT didn’t collapse and a bank run taken place
This is why Alameda attempted their finest to secure FTT’s cost.https://t.co/nX1tphjLNR
— Lucas Nuzzi (@LucasNuzzi) November 8, 2022
They didn’t, since “the FTT ICO agreement vests instantly. Had FTX let Alameda implode in May, their collapse would have guaranteed the subsequent liquidation of all FTT tokens vested in September.” If the situation the Coin Metrics expert presents is genuine, SBF and business needed to do it. And they paid a heavy cost for it. “The Alameda bailout likely put a damage on FTXs balance sheet to the point where it was no longer solvent. This would have been great if the cost of FTT didn’t collapse and a bank run taken place.”
This Is Where CZ And Binance Be Available In
In this situation, CZ And Binance in some way discovered the offer. And the most significant cryptocurrency exchange by trading volume had a heavy FTT bag. “As part of Binance’s exit from FTX equity in 2015, Binance got approximately $2.1 billion USD equivalent in money (BUSD and FTT),” CZ tweete d when he revealed they were liquidating. What does this heavy FTT bag suggest? The Coin Metrics expert describes, “As big holders of FTT, they might begin intentionally tanking that market to require FTX to deal with a liquidity crunch.”
And they did.
And after that they used to purchase FTX and ease them of their issues.
Probably for cents on the dollar.
A master stroke, if real.
However keep in mind the Coin Metrics’ expert caution, “Essential to keep in mind that this is my own individual highly-speculative take on what occurred based upon these on-chain artifacts.”
Included Image by Gerd Altmann from Pixabay|Charts by TradingView
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