Trouble for crypto exchange FTX continues to plague the market as Binance decides to liquidate its FTT holdings and process Bitcoin and stablecoin transfers. . In addition, Ethereum reserves on the crypto exchange have fallen to the lowest level. FTX and founder Sam Bankman-Fried are trying to resolve the issue and drop the FUD.
Meanwhile, the price of FTX Token (FTT) fell over 10% in the last 24 hours. The 24-hour low and high for FTT are $21.73 and $24.83, respectively.
Based on data released by CryptoQuant, the Ethereum (ETH) reserves of crypto exchange FTX fell by almost 300K in the past two days. Currently, FTX's ETH reserve is 108,246.43. It was one of the biggest falls since November 2020.
Meanwhile, FTX is working to increase its Ethereum reserves through subsidiaries and other crypto exchanges. Based on Nansen data, SBF's Alameda has transferred 26,600 ETH to FTX in the past 24 hours, the remaining ETH in Alameda is 9,325 ETH. Alameda has also sent large amounts of stablecoins from other crypto exchanges to FTX hot wallets.
PeckShieldAlert data revealed that FTX removed 1,985 ETH of liquidity from Gearbox Protocol. Additionally, another firm SBF Blockfolio has transferred 13,555 ETH to FTX.
Furthermore, FTX faces difficulties in processing Bitcoin withdrawals because its nodes are limited. Users complain that transactions are pending for almost 5-10 hours. The creation and redemption of stablecoins has also been slower than FTX. Crypto exchanges blame banks for slowdown in stablecoin creation and redemption.
On a different note, Binance CEO “CZ” announced plans to dump all FTX Token (FTT) holdings within the next few months, causing the FTT token price to plummet over 10% in the past 24 hours.
Volatility is increasing on the FTT token as the price continues to show sharp fluctuations. At the time of writing, the price of FTT is trading at $22.31, recovering some early losses. The FTT token has fallen to a low of $21.73.
