CryptoQuant: FTX’s Ethereum (ETH) Reserves at 2-Year Lows

InfoNesia.xyz – CryptoQuant’s recent analytics data indicate FTX Exchange has had its ETH reserves plummet to an all-time low since November 2020.

CryptoQuant Uncovers

CryptoQuant is a platform that displays market data, on-chain data, and long-term and short-term indicators of Bitcoin, Ethereum, and other altcoins. According to graphical data displayed by the platform, FTX reserves have plummeted to an all-time low compared to data from November 2020. The number of ETH in FTX’s reserves currently stands at 108246.43 ETH. In addition, ETH reserves have dropped by around 300,000 in the preceding two days, which is worth taking a closer look at.

The data also revealed that the decline in ETH reserves was not only happening on FTX but on almost all major crypto exchanges. One contributing factor to the decline is due to the supply shock, which has only been deepening as time goes by amidst the bearish market sentiment. However, the decline in ETH reserves seems to have significantly reduced due to other factors.

A state of complexities has befallen the FTX crypto exchange recently. In normal conditions, a high amount of reserves is good for an exchange as it implies the platform has a lot of liquidity to pull through massive transactions successfully. Low reserves mean low liquidity for the exchange. A feud broke out between Binance’s CEO CZ and Alameda’s CEO Ellison Caroline, and Binance decided to liquidate all FTT tokens.

Binance Plans to Liquidate FTT Tokens

Binance’s CEO CZ made the announcement on Twitter (on the 6th of November) stating that Binance’s exit strategy from FTX, the exchange, was going to liquidate all FTT tokens in its ecosystem. CZ stated that Binance had received approximately $1.2 billion in BUSD and FTT throughout its alliance with FTX.

“As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.” CZ stated in the tweet.

Due to the size of the liquidation, CZ stated that Binance would carry out the process progressively for a few months to reduce the impact that would otherwise pound FTT prices.

“We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete.” CZ further tweeted on the thread.