FTX Contract Deployer Unlocks 192 Million FTT, Exchange Tokens’ Questionable Tokennomics Highlight Red Flags – Altcoins Bitcoin News

Following the collapse of FTX and the exchange’s bankruptcy filing on Nov. 11, the exchange token of the trading platform called ftx (FTT) has lost 91.6% of its value over the past seven days. The utility of the FTT token is based entirely on the backing of the now bankrupt FTX and Alameda Research, but the token still trades at $1.85 per unit. Additionally, FTT’s Deployer Agreement has unlocked a staggering 192 million of his FTX tokens on November 12, 2022. Several crypto exchanges have stopped depositing his FTT, while crypto aggregators such as coiningecko.com have flagged the number of coins in circulation.

Suspicious FTT Unlocking Event Puts Crypto Community On High Alert

Touch after 9:00 pm (ET), crypto community noticed ftx (FTT) Deployer Contract Moved 192 Million New FTT Tokens. No one knows why this happened, but 192 million previously locked tokens have been added to the supply of 133,618,094 FTT in circulation before last night’s transfer.

The Coingecko.com website states that “the FTX Token contract deployer has circulated an entire FTT token that is believed to be locked.” Binance CEO Changpeng Zhao (CZ) tweeted in a now-deleted tweet that Binance has stopped depositing his FTT. CZ said:

Binance has stopped FTT [deposits],To prevent [the] Suspicious additional supply potential impacting the market. monitor the situation.

Similar to the Terra debacle, the FTX implosion occurred just six days after Alameda Research’s balance sheet was published, and Binance CEO Changpeng Zhao said his exchange had destroyed all FTT tokens. Then he spoke generally.

On November 5th, 2022, ftx (FTT) was trading at $25 per FTT, but by November 8th, it had fallen below $5 per coin. FTT is a token that was launched shortly after FTX was created, and in July 2019 he was privately launched by FTX and the Alameda team.

Imagine McDonald’s making its own profit. Let’s call them clowns. We keep most of it and sell some on the market.

McDonald’s will use the remaining clown dollars as collateral for the actual loan.

And people remember that clowns aren’t real.

— Lynn Alden (@LynAldenContact) November 8, 2022

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

FTT was created to provide FTX-based rebates when holders trade on exchanges or leverage FTX OTC. Anyone holding her FTT worth $1 million to her $5 million could be automatically upgraded to her VIP status when using both services.

Of the initial 350 million FTT tokens, 175 million were designated as “3 year unlock corporate tokens”. According to FTX’s transparency page archived at archive.org, 73,461,920 FTT tokens have been sold and vested by “July 21, 2019.”

While the ftx (FTT) token offered rebates to FTX users and VIP benefits to large holders, the FTT white paper emphasized that most of the FTT’s value comes from its “all-star team.” I’m here. According to the FTT white paper, FTX is backed by Alameda Research, a quantitative crypto trading platform started by Sam Bankman-Fried (SBF).

“Alameda trades between $600 million and $1 billion a day, accounting for about 5% of global trading volume, and ranks second on the Bitmex leaderboard,” the white paper boasts.

After dropping below $5 per coin on November 8, 2022, FTT’s token value has fallen below $2 per token. FTT is down 97.6% from the all-time high of $84.18 per unit reached on Sept. 9, 2021, but the very fast we saw when Terra’s LUNA (now his LUNC) collapsed I was able to stop the death spiral.

In fact, those who bought the FTT before September 6, 2019 are still up 74% against the US dollar. 50 million of his FTT tokens were sold at a price range of $0.10-$0.20 during the initial public offering (IEO).

10 addresses hold 93% of FTT supply — Despite negative news, FTT still trades below $2 per unit

Data recorded before the deployer was unlocked indicated that the FTT once had a circulating supply of approximately 133,618,094 FTT. His FTT tokens, purchased in July 2019, were unlocked at a rate of “about 3% per day after listing. FTX also did regular FTT redemption and burn Strengthen the tokenomics of the coin.

FTT is highly concentrated, with 22,837 addresses holding ERC20 tokens and 10 addresses holding 93.22% of the FTT supply, according to coincarp.com rich list data. According to markets.bitcoin.com’s In the Block stats, 96% of owners have suffered losses in terms of profits.

Into the Block’s FTT large holders metric concentration is 97% and the price correlation between FTT and Bitcoin (BTC) is around 0.9%. Over the last 7 days, $2.4 billion worth of his FTT has been settled in the past week in transactions over $100,000 in FTT tokens.

The FTT hit a weekly high of 520 large transactions on November 8, 2022, with approximately 21 large transactions in the last 24 hours. Last week’s average FTT transaction was $55,266.27 worth of his FTT tokens.

Most of FTT’s trading volume in the last 24 hours comes from exchanges such as Binance, Gate.io, Hitbtc, Huobi and Kucoin respectively. Over 60% of FTT trades are against Tether (USDT), followed by BUSD, BTC, BNB and ETH respectively.

Despite all the bad news surrounding the collapse of FTX and the massive concentration of FTT holders, unlike LUNC, the token has not plummeted to zero.FTT to unlock the rest of locked FTT tokens The FTT has fallen more than 7% against the US dollar after news of the expander deal broke.Over the past 24 hours, the FTT has been swapping between $1.79 and $2.20 per unit.

What do you think about the FTX exchange token FTT? Let us know your thoughts on the matter in the comments section below.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.