FTX Contract Deployer Unlocks 192 Million FTT, Exchange Token’s Questionable Tokenomics Highlights Red Flags

FTX Contract Deployer Unlocks 192 Million FTT, Exchange Token’s Questionable Tokenomics Highlights Red Flags

Following the collapse of FTX and the alternate submitting chapter on Nov. 11, the buying and selling platform’s alternate token known as ftx (FTT) has shed 91.6% in worth over the past seven days. While the FTT token’s utility relies fully on the backing of the now-bankrupt FTX and Alameda Research, the token remains to be buying and selling for $1.85 per unit. Moreover, FTT’s deployer contract surprisingly unlocked 192 million FTX tokens on Nov. 12, 2022. While a couple of crypto exchanges have halted FTT deposits, crypto coin aggregation websites like coingecko.com have flagged the variety of cash in circulation.

A Suspicious FTT Unlocking Event Puts Crypto Community on High Alert

A contact after 9:00 p.m. (ET), the crypto group noticed that the ftx (FTT) deployer contract moved 192 million new FTT tokens. No one is aware of why this occurred, however it has added 192 million beforehand locked tokens to the provision of 133,618,094 FTT that was circulating previous to the switch final night time.

Coingecko.com’s web site notes that the “FTX token Contract Deployer has transferred out the entirety of supposedly locked FTT tokens into circulation.” In a now-deleted tweet, Binance CEO Changpeng Zhao (CZ) tweeted that Binance has halted FTT deposits. CZ said:

Binance has stopped FTT [deposits], to stop [the] potential of questionable extra provides affecting the market. We will monitor the state of affairs.

Similar to the Terra fiasco, the FTX implosion came about in a matter of six days after Alameda Research’s balance sheet was made public, and Binance CEO Changpeng Zhao told the general public his alternate could be dumping all of its FTT tokens.

On Nov. 5, 2022, ftx (FTT) was buying and selling for $25 per FTT and by Nov. 8, it was beneath $5 per coin. FTT was a token launched shortly after FTX was created, and it was privately launched in July 2019 by the FTX and Alameda groups.

FTX White Paper Claims FTT Is Backed by an ‘All-Star Team’

FTT was made to present house owners FTX-based rebates after they traded on the alternate or leveraged FTX OTC. Anyone holding between $1 million to $5 million value of FTT might get robotically upgraded to a VIP standing in the event that they used each companies.

Out of the preliminary 350 million FTT tokens, 175 million have been designated as “firm tokens that unlock over a three-year interval.” 73,461,920 FTT tokens have been offered and vested by “July twenty first, 2019,” in keeping with FTX’s transparency page saved to archive.org.

While ftx (FTT) tokens supplied rebates for FTX customers and VIP perks for giant holders, FTT’s white paper highlights that the majority of FTT’s worth stems from an “all-star staff.” The FTT white paper says that FTX is backed by Alameda Research, the quantitive crypto buying and selling platform began by Sam Bankman-Fried (SBF).

“Alameda trades $600 million to 1 billion a day, accounts for roughly 5% of worldwide quantity, and is ranked 2nd on the Bitmex leaderboard,” the white paper boasts.

Following the drop beneath $5 per coin on Nov. 8, 2022, FTT’s token worth is right down to below $2 per token. While FTT is down 97.6% from the $84.18 per unit all-time excessive it reached on Sept. 09, 2021, it’s managed to stave off the extraordinarily quick demise spiral Terra’s LUNA (now LUNC) noticed when it collapsed.

In truth, anybody who bought FTT earlier than Sept. 06, 2019, remains to be up by 74% towards the U.S. greenback. 50 million FTT tokens have been offered for a worth vary between $0.10-$0.20 in the course of the preliminary alternate providing (IEO).

10 Addresses Hold 93% of the FTT Supply — Despite the Negative News, FTT Still Trades for Under $2 per Unit

Data recorded earlier than the deployer unlock had proven FTT as soon as had a circulating provide of round 133,618,094 FTT. The FTT tokens that have been bought in July 2019 unlocked after the itemizing, “at a fee of roughly 3% per day. FTX additionally did common FTT repurchases and burns to bolster the coin’s tokenomics.

FTT may be very concentrated as 22,837 addresses maintain the ERC20 token and 10 addresses maintain 93.22% of the FTT provide, in keeping with coincarp.com richlist data. Into the Block statistics by way of markets.bitcoin.com, reveals 96% of holders are at a loss by way of revenue.

Into the Block’s focus of huge holders metrics for FTT is 97% and FTT’s worth correlation with bitcoin (BTC) is round 0.9%. In the final seven days, by way of transactions better than $100K in FTT tokens, $2.4 billion value of FTT has been settled this previous week.

FTT noticed a weekly excessive of 520 massive transactions on Nov. 8, 2022, and roughly 21 massive transactions within the final 24 hours. The common FTT transaction over the course of the final week was $55,266.27 value of FTT tokens.

Most of FTT’s commerce quantity over the past 24 hours derived from exchanges like Binance, Gate.io, Hitbtc, Huobi, and Kucoin respectively. Over 60% of FTT trades are towards tether (USDT) which is adopted by BUSD, BTC, BNB, and ETH respectively.

Despite all of the unhealthy information surrounding FTX’s collapse and the immense focus of FTT holders, in contrast to LUNC, the token has not plummeted to zero. After the information broke concerning the FTT deployer contract unlocking the rest of locked FTT tokens, FTT is down greater than 7% decrease towards the U.S. greenback. During the final 24 hours, FTT has been swapping for $1.79 to $2.20 per unit.

What do you concentrate on the FTX alternate token FTT? Let us know what you concentrate on this topic within the feedback part beneath.

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