Most of the illiquid tokens were FTT, FTX’s proprietary token, which has dropped 97% from its all-time high (and about 89% just this week).
The remainder are a mish-mash of others, but they account for less than 10% of the total.
They had some other assets on their balance sheet, though the reports about how much and of what are very mixed and the only actual data source we have is from before the crash. I believe they sold off a few hundred million Bitcoin, Ethereum and Solana trying to prop up the price of FTT at $22.
Look at the price of FTT on the evening of the 7th. Volatility goes to basically zero. You only see that when there’s one buyer in the market and everyone else wants to sell.
There’s some articles mentioning huge outflows from Alameda-associated wallets around that same time, but I’m too lazy to go find them.
But all that is kind of besides the point. The tokens were illiquid because Alameda owned 180% of the circulating supply. If they made bad trades and FTX was forced to liquidate that collateral, who was going to buy it? There were no buyers.
That’s also why they were so desperate to keep the price up; FTT was like 90% of their net assets.
Most of the illiquid tokens were FTT, FTX’s proprietary token, which has dropped 97% from its all-time high (and about 89% just this week).
The remainder are a mish-mash of others, but they account for less than 10% of the total.
They had some other assets on their balance sheet, though the reports about how much and of what are very mixed and the only actual data source we have is from before the crash. I believe they sold off a few hundred million Bitcoin, Ethereum and Solana trying to prop up the price of FTT at $22.
Look at the price of FTT on the evening of the 7th. Volatility goes to basically zero. You only see that when there’s one buyer in the market and everyone else wants to sell.
There’s some articles mentioning huge outflows from Alameda-associated wallets around that same time, but I’m too lazy to go find them.
But all that is kind of besides the point. The tokens were illiquid because Alameda owned 180% of the circulating supply. If they made bad trades and FTX was forced to liquidate that collateral, who was going to buy it? There were no buyers.
That’s also why they were so desperate to keep the price up; FTT was like 90% of their net assets.