Some people are warning that funds on FTX could be at risk.
The concerns in the cryptocurrency community that FTX might cause another crash like Terra have been raised as a result of the rapid fall in stablecoin reserves on the exchange over the previous 24 hours.
FTX Outflows Lead Other Exchanges
According to The Data Nerd, Nansen data reveals that over the last seven days, FTX stablecoin outflow was the greatest of all exchanges. The screenshot shows that the FTX reserve is down $300 million, leaving a balance of $261 million at the time of the tweet.
The information above was verified by another blockchain analytics company. The FTX stablecoin reserve is currently at $107 million, according to CryptoQuant data. This is an improvement over the previous two weeks when it had dropped by 93% to $51 million.
Stablecoins from Circle and other exchanges were sent to FTX by Alameda Research, which is what caused the reserve to grow. Sam Bankman-Fried, the creator of FTX, owns the cryptocurrency trading business Alameda.
Since Nov. 3, Alameda has taken $487 million USDC out of Circle and transferred it to the FTX market, according to Lookonchain. Additionally, it withdrew more than $197 million USDC from Circle following CEO Caroline Ellison’s statement that the trading firm is prepared to purchase Binance’s FTT for $22 per unit.
Ethereum withdrawals on FTX set a record high, according to CryptoQuant data. The FTX reserve is at 108,246.43 ETH right now, its lowest level since November 2020.
Jump Crypto And Nexo Lead In Withdrawals
According to Chinese cryptocurrency reporter Colin Wu, companies like Jump Crypto and Nexo recently made substantial withdrawals from FTX. Wu claims that Jump removed $40.4 million USDC from the exchange run by SBF. Peckshield added that Nexo, a crypto lending company, also withdrew more than $90 million from FTX during the same time frame.
According to Lookonchain, this surge of withdrawals caused FTX’s hot wallet value to drop from $2.4 billion to $1.8 billion in the last 24 hours.
With all these events playing out in the full glare of the public, crypto Twitter turned red hot with influencers offering stern takes to millions of followers.
Crypto influencer and creator of the website crypto banter Ran Neuner advised his followers to withdraw their money from FTX.
Neuner claims that he has nothing against the exchange but that there is “there is no upside to keeping funds on any exchange. More so on an exchange that has FUD.”
Many traders who attempted to withdraw funds from the exchange noted that their withdrawals were delayed, and others claimed that they were charged extortionate costs for the withdrawal process.
As panic and withdrawals ensue, FTX are moving to assure investors saying that all is well.
According to a Twitter thread from the crypto billionaire, the exchange has “already processed billions of dollars of deposits/withdrawals today; we’ll keep going.” When everything blows over, the exchange would accept users who withdraw their money, he added.
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