On the other hand, the analysis firm Nansen predicts that the collapse of Terra While igniting the financial troubles of FTX and Alameda Research, on-chain data from intelligence and research firm Glassnode suggests that FTX’s “crack formed way back from May to June.” I’m here. Glassnode’s report highlights the “expanding pool of [on-chain] data” indicating a significant drop in FTX’s crypto reserves following the Terra fallout.
Glassnode report highlights how FTX’s Bitcoin, Ethereum, and stablecoin balances plummeted after Terra ecosystem implosion
17} An unknown entity has offloaded large amounts of Ether to date. Additionally, FTX’s Bitcoin (BTC) wallet holds his 20,176.84 Bitcoins on November 5, 2022, currently worth $326.43 million in BTC disappeared without a trace.
Blockchain intelligence and research firm Glassnode’s weekly on-chain newsletter reports that BTC reserves held by FTX increased significantly at the end of June. explained to have decreased. Glassnode also noted that monitoring FTX’s Bitcoin reserves is a complex process.
“Tracking FTX’s exchange reserves has been somewhat of a challenge for many data providers over the years. More from Glassnode’s on-chain newsletter: “From April to May this year, FTX reserves in our cluster peaked at over 102,000 BTCThis dropped dramatically to 51.3% in late June.” The Glassnode research report added:
Since then, reserves have fallen to , continued to decline to virtually zero in this week’s bank run. As allegations surfaced that Alameda was embezzling customer deposits, this meant that the Alameda-FTX entity had actually suffered serious financial losses in May and June following the bankruptcies of LUNA, 3AC, and other lenders. may have experienced significant balance sheet deterioration.
Glassnode: “There is a growing pool of on-chain data suggesting cracks formed dating back to May and June.
Bitcoin Reserve Cash wasn’t the only bitcoin reserve cash to see a significant drop since Terra’s demise, according to FTX’s Glassnode report. Researchers detail a 55.2% drop in Ethereum (ETH) reserves on FTX as 576,000 Ether left the exchange in June. When FTX’s financial cracks really started to appear after Binance CEO Changpeng Zhao (CZ) revealed that Binance was destroying all FTT tokens, Glassnode secured FTX’s ETH stated that the balance decreased from 611,000 ETH to 2,800. ETH, lost his 99.5% of Ether reserves.
“Like bitcoin balances, this left very little [Ethereum] in wallets owned by FTX, effectively liquidating what was left off the balance sheet as the bank ran. ,” elaborated Glassnode.
According to Glassnode, stablecoin reserves “began to decline significantly from [October 1]. September 19, 2022], $725 million to virtually zero next month.” FTX stablecoin balances hit new highs in June when crypto economy was in decline, says on-chain survey the report points out.
Glassnode’s newsletter states that there is still a lot of obfuscation around the collapse of FTX and Alameda, but similar to Nansen’s findings, on Chain data suggests that problems started to occur after Terra’s ecosystem imploded. The Glassnode researchers conclude:
There remains great uncertainty as to what actually happened between FTX and Alameda, but the crack There is an ever-growing pool of [on-chain] data that suggests the was formed as far back as May-June. This makes the past few months just a harbinger of what is likely to be an inevitable exchange collapse.
Glassnode’s weekly on-chain newsletter covering the entire FTX collapse You can read here.
What do you think of his Glassnode on-chain analysis of all Bitcoin, Ethereum, and stablecoins that left the FTX platform after the collapse of Terra?Comment section below. So please let us know your thoughts on this matter.
Image Credits: Shutterstock, Pixabay, Wiki Commons