In response to the “On-Chain Evaluation: The Collapse of Alameda and FTX” report launched by Nansen, FTX and Alameda have been intently linked from the start. FTX’s platform forex, FTT, has concerned Alameda for the reason that first day it was created. The 2 monopolize the vast majority of tokens within the complete provide of FTT, which by no means really enters the circulating market.
The preliminary success of Alameda, FTX, and the speedy rise of FTT have all possible boosted the worth of property on Alameda’s steadiness sheet. The FTT positions therein had been possible utilized by Alameda as collateral for borrowing. If the borrowed funds are utilized in illiquid investments, FTT shall be a significant weak point for Alameda. With the collapse of Terra/UST in Might, a liquidity crunch ensued, with many collectors beginning to name of their loans after the collapse of 3AC and Celsius.
Alameda wants funding sources which are nonetheless keen to originate loans with present collateral to supply liquidity. Alameda deposited roughly $3 billion price of FTT on FTX, most of which was held till after the occasion.