FTX withdrawals have been running well Despite the massive liquidation
New York City: As a direct consequence of Binance selling its original holding of the FTT token, there has been a significant amount of liquidation of these tokens. In reaction to the recent occurrences, SBF has provided assurances in recent tweets that withdrawals are functioning regularly.
The current drama on FTX has prompted a lot of people to make observations. According to a tweet from Adam, the main FTX hot wallet previously contained a total of $90 worth of USDC before it was refilled. Even though money was arriving to an address named “Fund” through on-chain trades, Adam expressed his worry that there was not a cold wallet available to store the cryptocurrency.
“On Etherscan, the only probable wallet that links with FTX is labeled as OTC. This wallet is your only option.” Is there a chance you have any cold wallets that I’ve misplaced somewhere? ”
Adam is of the opinion that money for withdrawals shouldn’t originate from other exchanges or financing wallets, regardless of whether or not exchange businesses have the necessary capital. He is of the opinion that there ought to be a wallet in the cold storage facility that has sufficient cash to cover withdrawals.
Adam continues by saying that in order for consumers to verify that cryptocurrency exchanges have enough reserves, they need to at the very least keep track of both their hot wallets and their cold wallets. Adam hypothesizes that the problem may have simply been one of inadequate liquidity as the wait for a multisig cold wallet continued, which highlights the need for better openness.
On Sunday, November 6, the Chief Executive Officer of Binance, Changpeng Zhao, announced that the exchange will be selling all FTT tokens. Although CZ’s business usually holds onto tokens for extended periods of time, the CEO of Binance said that the exchange had unduly held onto its FTT tokens.
It’s been weeks since people started criticizing Sam Bankman-Fried for legislative ideas he made in a previous post that suggested putting constraints on decentralized finance. CZ provided a response to these criticisms and has subsequently made a commitment to modify his views on legislation.
Following the withdrawals from Binance, other participants have entered the competition. According to the data provided by PeckShiled, Jump Trading withdrew 40.4 million USDC from FTX throughout the course of the past twenty-four hours. A total of $109.8 million worth of cryptocurrency was transferred from FTX to the cryptocurrency loan platform Nexo. This transfer included about $13.9 million worth of stablecoins in addition to 56,432 ETH.