Sam Bankman-Fried’s crypto exchange FTX and trading firm Alameda Research are experiencing a serious liquidity problem. While problems continue to occur, these altcoin projects are being sold to stop the FTT collapse. Binance CEO Chanpeng Zhao is ready to sign a non-binding LOI to help with the liquidity crunch. As a result, crypto exchange Binance is waiting to acquire FTX.
Alameda Research sells these tokens from FTT collapse
Alameda is selling SOL, the altcoin of the ETH rival Solana ecosystem, to contain the FTX Token (FTT) drop. According to on-chain data, the company is likely to sell several altcoin projects, including Polygon’s MATIC. Alameda Research, a subsidiary of FTX, stepped up in the comments made by Binance CEO “CZ”. Alameda, on the other hand, announced that they will sell all FTTs in the next few months. After the announcement, SOL sales started. This move brought with it a major liquidity problem in FTX as investors started selling their FTTs.
Alameda and FTX ETH reserves fell to their lowest levels since November 2021. Then he started to transfer Ethereum (ETH) and stablecoins to the crypto exchange. Several exchange users reported waiting for 5 to 10 hours and delays in Bitcoin withdrawals. FTT token suffered a serious loss of value with the sales experienced throughout the market.
Can Solana and Polygon’s altcoins rally?
Alameda has started selling Solana’s altcoin SOL to counter the drop in FTT. Sam Bankman-Fried had $1.2 billion SOL through Alameda. But he currently has almost $500 million worth of SOL. SOL price faced serious drops and is down 33.02 percent in the last 24 hours. SOL is currently trading at $18.87. According to the firm, Solana Compass, 47.28 million SOL tokens will be unlocked in one day. As a result, it will sell more tokens.
It also transferred 2.97 million MATIC, worth 2.9 million, to crypto exchange Binance. Alameda also has the potential to transfer more MATICs to exchanges. According to crypto analysts, MATIC price is likely to drop to the $0.60 support level. Investors need to watch MATIC price as Alameda’s decline could trigger similar sell-off to Solana.
Alameda has $150.53 million worth of cryptocurrencies in wallet addresses, including stablecoins, ETH, BIT and FTT. It also holds a significant amount of SRM, OP, MATIC, MASK, SAND and FTM tokens. Therefore, there is a risk that all these altcoins will be sold by Alameda.
MATIC price under $1
Polygon’s MATIC price dropped below $1 due to a market-wide sell-off. MATIC price is down over 21% in the last 24 hours to trade at $0.91. The 24-hour low and high are $0.8837 and $1.23, respectively. Solana became volatile as the price surged over 10% within an hour. SOL price is trading at $19.44.