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Wednesday, December 7, 2022
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    HomeAltcoinAlameda Research Moves $370 Mln To FTX, More Bailouts Incoming?

    Alameda Research Moves $370 Mln To FTX, More Bailouts Incoming?

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    Crypto dealer Alameda Analysis, which is owned by FTX founder Sam Bankman-Fried, was seen transferring almost $370 million to the alternate this week.

    On-chain knowledge agency PeckShield flagged a series of transactions between Alameda and FTX, the place the dealer moved a number of tokens, together with BUSD, USDC and ETH to the alternate’s pockets.

    Whereas it was not instantly clear what the aim behind the transactions was, they arrive after FTX bailed out not less than two main crypto lenders.

    The alternate has equipped credit score strains totalling over $700 million to Voyager Digital and BlockFi. Each the lenders had been going through a liquidity crunch amid a extreme drop in crypto costs.

    FTX desires to stem contagion

    Founder Sam Bankman-Fried mentioned in a recent interview that the exchange- which is among the largest crypto players- has a duty to “stem contagion.” However the transfer can also be giving FTX a a lot bigger stake within the crypto market, with the Voyager deal reportedly making Fried the biggest shareholder within the agency.

    Fried can also be a 7.6% stakeholder in buying and selling app Robinhood, which has a current, however sizeable presence within the crypto trade.

    FTX’s bailouts come on the heels of a possible insolvency in crypto hedge fund Three Arrows Capital (3AC), which Voyager and BlockFi had been each uncovered to. Considerations over contagion from the insolvency have unfold throughout the market, bringing down crypto costs.

    However whereas Fried has attributed the crypto market weak spot to rate of interest hikes by the Federal Reserve, there look like extra components at play.

    Alameda behind market weak spot?

    A bulk of 3AC, and crypto lender Celsius’ insolvency dangers stem from weak spot within the costs of Lido Staked Ethereum (stETH).

    Each 3AC and Celsius had used the token as collateral, and when its costs fell, they had been uncovered to margin calls they may not meet. This in flip liquidated their positions, dumping tokens into the market.

    However stETH weak spot coincided with Alameda swapping about $57 million of the token on Curve, inflicting a liquidity pool imbalance and denting the token’s peg to Ethereum.

    FTX CEO Fried has denied hypothesis over the matter, calling it  a “dumb conspiracy theory.”

     

    With greater than 5 years of expertise masking world monetary markets, Ambar intends to leverage this data in the direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly find how geopolitical developments can affect crypto markets, and what that would imply on your bitcoin holdings. When he is not trawling by way of the online for the newest breaking information, you could find him taking part in videogames or watching Seinfeld reruns.
    You may attain him at [email protected]

    The offered content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.





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