What happened around FTX and Binance has been catastrophic for the entire cryptocurrency market. But worse will come in the coming hours. Millions of dollars of unlock time is approaching for some cryptocurrencies.
Hours left until the $ 320 million unlocking for these cryptocurrencies
In the coming hours, approximately 18 million Solanas (SOLs) that FTX and Alameda fund locked in 2018-2019 will be unlocked. These cryptocurrencies will enter circulation immediately after exiting staking.
The average price of Solana staked by FTX and Alameda fund during 2018-2019 was $1. Now even if the SOL price drops below $10, companies are making tremendous profits. However, Solana price faced a disaster scenario before that. Solana investors lost over 50% in just 3 days. SOL is currently trading around $18, down 33% from the last 24 hours. What happened between FTX and Binance was directly effective in the decline.
1.7 million Solana, including liquid
Meanwhile, the market prepares for the Solend whale liquidation as the Solana price plummets towards 2020 highs. These whales borrowed 30 million USDC against collateral of two million SOLs in previous issues. In addition to the 18 million SOLs that will come out of staking in the next 24 hours, the liquidation of Solend whales also means another potential disaster.
Technically, this liquidation has already been triggered. Current prices have exceeded the whales’ liquidation threshold by more than 50%. This means that the liquidation of 2 million SOLs depends only on time. As a result, Solend whales are also hit hard by the FTX and Alameda debacle.
Binance prepares to buy FTX as cryptocurrencies fall
The world’s largest cryptocurrency exchange by trading volume confirmed its plans to acquire its biggest competitor, FTX, on Nov. FTX took the biggest hit from rival Binance after initial rumors about a possible imbalance in Alameda Research’s financial structure based on a Coindesk report dated Nov. The leading exchange announced that it will sell its $500 million worth of FTT shares, as it is concerned that Alameda Research’s entire balance consists only of FTT. This was initially devastating for the entire market, not FTT.
FTT is currently trading at $4.46. It fell hard from around $22 to $2.5 on November 9.
Meanwhile, FTX and Alameda had to sell their holdings of Bitcoin and other cryptocurrencies to make up for the drop. In fact, Bybit CEO Ben Zhou even accused FTX of violating its agreement not to sell BitDAO (BIT) tokens.
Events soon spread to DeFi projects linked to FTT. As you follow on Kriptokoin.com, Magic Internet Money (MIM), which uses FTT as collateral, lost its dollar stability.