Over the last few days, the FTX token (FTT) has crashed and burned rapidly. Binance’s declaration that it would liquidate the FTT it owns compelled this. The question is whether the FTX token’s price will remain stable or even increase in the future. What is the FTX token predicted to be worth by the end of 2022? Now, what exactly is happening with FTX? Let’s see.
What happened to the FTX Token (FTT)?
The value of the FTX token (FTT) has plummeted in recent days. The FTT dropped from a relatively constant rate of $22 to $4 within a few hours. In the days that followed, the FTX token dropped to $2 before recovering slightly and climbing above $3.50. But at the time of writing this, the token is trading at $2.32.
The FTX token temporarily lost 90% of its value due to the price implosion. Above all, the price drop from 19 to 4 dollars in less than three hours was extremely damaging. The price has been able to stabilize in the last 1-2 days at a low level between 2 and 3 dollars.
What was the reason for the FTT’s demise?
The value of the FTX token (FTT) plummeted after Binance, the world’s largest crypto exchange, announced that it would liquidate all of its FTX tokens over the next few weeks. The FTX price began to plummet as a result of this move. As a result, a growing number of investors doubted the FTT’s survivability and sold their tokens.
What is the forecast for the FTX token at the end of the year?
Hundreds of millions of dollars are now flowing out of FTX wallets, some speculate liquidators but it's late on a friday night, not typical times for such rapid heavy movements. Some withdrawals are being swapped from Tether to DAI. Hack or insider actions? $26 million here pic.twitter.com/8wWlaE7na9— foobar (@0xfoobar) November 12, 2022
Now, Hundreds of millions of dollars are flowing out of FTX wallets, which some attribute to liquidators, but it’s late on a Friday night, which is strange for such quick heavy activities. Some Tether withdrawals are being transformed into DAI withdrawals. Insiders or hackers? Here’s $26 million.
Press Release pic.twitter.com/rgxq3QSBqm— FTX (@FTX_Official) November 11, 2022
Also, FTX has filed for bankruptcy in the United States, pressuring CEO Sam Bankman-Fried to step down. The story is still evolving, with FTX issuing an official comment concerning the bankruptcy filings. Besides that, according to the declaration, John J. Ray III has been named CEO, with SBF staying “to help in an amicable resolution.”
The drop of FTX and Sam Bankman-Fried was one of the most substantial in the crypto world’s history. There is no standard in seeing how the entity could heal after being a reliable name in the crypto trading market.
Earlier this week, it was revealed that Bankman-Fried is requesting more than $9 billion in funding for FTX. Following that, a group of investors is said to have been in discussions, but no advancement on an agreement has been publicly disclosed. Only time can tell where FTX, and its now-former CEO, will go next.
What is happening right now at FTX?
The most shocking thing now is that according to reports, up to $2 billion in client funds have been discovered missing at FTX. During the $10 billion fund transfer to Alameda, between $1-2 billion in client funds vanished. Executives set up a “back door” to bypass red flags.
Now, it seems that FTX is most likely under attack right now, or insiders are fleeing with funds. Several people have reported that their FTX balances have now read $0 since the attack began. It previously showcased their balance but was not cashable. The below thread is displaying what exactly is happening:
Here's the debank profile to get a birdseye view of all the assets: https://t.co/yQ1hEXjT2s pic.twitter.com/lq8upGG4ug— foobar (@0xfoobar) November 12, 2022
We can see that all the FTX assets are currently being transferred from various tokens into DAI, which is not freezable due to the lack of a centralized authority. This is extremely fishy, and most probably done with malicious intentions.
On the blockchain, we can watch the greatest heist of all time in real-time. Anyone who claims to believe the market will survive could be delusionary. After this, the regulators will crack down hard and everything will be exceedingly regulated. Wallets that do not require KYC could be considered a felony.
Insiders at FTX are most likely attempting to flee with funds. Both FTX and FTX US wallets have now been subverted and mixed. The current amount funnelled is $380 million. Some of the wallets are labeled “fucksbf” and “fuckftxandsbf.eth”; this could be a reverse optics gimmick to give the impression to be a hack. Everything is possible.
It’s worth noting that an official FTX tweet was issued just moments ago. It *might* appear to suggest insider collaboration. The reality that this “hacker” is uninterested about openly moving funds on chain illustrates his frustration. If there was an insider, it would have to be someone from the innermost circle.
One of the reasons behind this could be that you really have to liquidate because you’re under investigative process, you know the people will react, and you don’t have entry to an OTC desk/executor, so you offload as soon as possible to avoid the period of time the market can outdo you and sell anything censorable for permissionless assets.
Is it true that FTX has been hacked?
Official: FTX has been hacked.— 0xTre (@0xTre) November 12, 2022
Source: admin of FTX Community Chat pic.twitter.com/IukG4ekWhO
The platform had been hacked, according to administrators of the FTX community’s Telegram group, and all of the exchange’s funds emerged to be gone. FTX U.S. General Counsel Ryne Miller, who supposedly pinned the text in the group, clarified that he was trying to look into “anomalies” with FTX deposits on other exchanges.
Several users on social media have reported having their exchange wallets emptied could see token swaps by stablecoins like Dai onchain. Martin Lee of Nansen noticed “humongous withdrawals to the same wallet,” which the exchange had not earlier divulged.
According to Reuters, former FTX CEO Sam Bankman-Fried purportedly had a security hole in the company’s network. “In a course of the investigation, FTX legal and finance teams found that Mr Bankman-Fried implemented what the two people defined as a ‘backdoor’ in FTX’s book-keeping framework, which was developed utilizing bespoke software,” according to Reuters.
The FTX story is unimaginable. So far, here’s what’s happened.
- There was no board of directors at FTX.
- FTX gave the Democrats $40 million
- The Chief Lobbyist for FTX has deactivated his Twitter account.
- FTX collaborated with the Metaverse-based auditing firm Prager Metis.
- Bankman-Fried invested huge amounts of money in venture capital funds handled by companies such as Sequoia Capital, which also supported his troubled FTX crypto exchange.
- Sequoia has removed a 13,000-word fulsome profile of SBF that was earlier posted on its website.
- The FTX organization chart is extremely complex.
- The new CEO of FTX was a former Enron bankruptcy lawyer.
- FTX is a “partner” of the World Economic Forum.
- SBF investments cover the entire ecosystem.
- FTX invested $300 million in real estate, including in Albany, Bahamas, the “playground of the rich.”
- 134 of FTX’s companies declared bankruptcy.
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