On November 4, Coindesk, a US coin media, reported that the largest asset of Alameda, a company owned by Sam Bankman-Fried (SBF), is its “FTX (token) FTT” which accounts for about one-third of its total assets, in other words, the largest asset of the company is the crypto tokens issued by another company of SBF.
In the early hours of Nov. 6, a user tweeted that he found that FTX’s competitor, Binance, had transferred the remaining $23 million worth of FTTs on his account to the trading platform, triggering another strong reaction from the coin community as FTT prices began to fall.
Shortly after, Alameda CEO Caroline Ellisonsaid, “we have over $10 billion in assets not reflected on our balance sheet, and that the company has repaid most of its loans in light of the tightening crypto credit space this year.”
Subsequently, Binance Founder Zhao Changpeng tweeted that due to the recent revelations, the decision was made to liquidate all remaining FTTs on the books and will attempt to sell them in a way that minimizes the impact on the market, which is expected to take several months to complete due to limited market conditions and liquidity. Following the tweet, FTT prices quickly fell from near $24 to near $21.
On November 7, Alameda CEO Caroline Ellison immediately sent a counter tweet saying that Alameda would be happy to buy it back at $22 if it wished to minimize the impact, and after the tweet, the FTT price rebounded to $22.
Zhao Changpeng continued to post that the liquidation of FTT was only a late exit risk management, but also learned from the lessons of the previous LUNA storm, “Binance has supported FTX before, but will not pretend to love each other again after the divorce.”
Subsequently, SBF issued an article saying that the rumors were unfounded, that FTX was highly regulated, and that today it had handled billions of dollars in deposits/speculative cash, and that a large number of exchanges between dollars and stable currencies were underway, strongly assuring that FTX liquidity was completely intact.
But in fact, after the initial Coindesk report found, some users found that Alameda from the cryptocurrency company Circle mobilized USDC (U.S. dollar stabilized coins), to FTX top-up up to 560 million U.S. dollars.
On Nov. 9, according to Reuters, SBF indicated in a Nov. 8 internal letter from employees that FTX had seen net withdrawals of up to $6 billion in the past three days and forewarned that FTX.com would soon stop withdrawals. But in fact, some of the FTX exchange’s on-chain cryptocurrency wallets have been suspended since 7 p.m. on Nov. 7, and all requested on-chain withdrawals have been put on hold.
On Nov. 9, SBF tweeted that it had reached an agreement with Binance to acquire FTX, and Zhao Changpeng retweeted, “Due to a severe liquidity crunch, FTX has asked for our help. To protect our users, we signed a non-binding letter of intent to wholly acquire FTX.com and help resolve this liquidity crunch. In the next few days, we will conduct a full due diligence process.”
On Nov. 10, Binanceissued a statement saying, “Initially we hoped to support FTX customers and provide liquidity, but the problem was beyond our control and there was nothing we could do. The announcement of the collapse of the acquisition triggered another collective collapse of cryptocurrencies, with FTT plunging 80% in just a few days.
However, in the midst of this huge earthquake in the cryptocurrency world, we found that AET is surprisingly soaring. In the midst of the global cryptocurrency crash, AET has been soaring for many days. According to ESM, the current price of AET has reached an all-time high of 732.28 ACU, an increase of 1.6%. On November 9, when the currency market was in turmoil, the price of AET was still firm, and on that day, the price of AET was oscillating around 700ACU. On November 10, before the currency market was bleeding”, AET started to surge. The market showed that AET started to surge at around 7:30 on November 10, pulling from around 703ACU to 720ACU, and then continued to rise steadily, setting new all-time highs.
We compared the timing of the FTX event and found that some of the money that was left from the FTT crash went to the AET in the ESM, causing the AET to reach new highs after the event. This event also reflected investors’ support for the trust in ESM and the value created by the AET public chain.
The AET was officially launched on July 25, 2022 with an opening price of 1ACU, and has now risen more than 700 times in more than three months since its launch. The AET public chain will be officially launched in 2022, and under the maintenance and operation of the AET Foundation, the AET public chain aims to become the world’s number one financial application payment public chain, which supports the basic functions of issuance, exchange and payment of the Asian ecological pass-through AET, and realizes the free flow of AET in the world safely and efficiently.