🔔 FTX is as safe as The Bank Of England

 Quick reminder 🙌

💸 Transaction fees can be 10x lower;

🌍 No cross-border fees;

⚡️ Faster payments & settlements;

🛡 No chargebacks (fraud);

💯 No payment limits (ex. cards have limits);

🔐 Works with any wallet, your keys your money (Satoshi’s vision);

🔜 Merchant Yield. https://t.co/XcemXjNcRJ— Utrust (@UTRUST) October 6, 2022 

 1) A competitor is trying to go after us with false rumors.

FTX is fine. Assets are fine.

Details:— SBF (@SBF_FTX) November 7, 2022 

Data from Nansen shows that FTX is suffering from a major spike in exchange outflows. During the last week approximately $292 million in stablecoins have left FTX. Traders could be departing the exchange over fears of liquidity issues, as Alameda is a large market maker on FTX.

This is wild to me, because one of the largest scandals in retail FX history was FXCM being banned from the US over similar activity.

FXCM had an entity that was 'winning' business whilst suggesting they operated a 'no dealing-desk model', which means orders would be sent straight through to the market without the broker having any intervention.

Alameda Research – SBF’s trading firm – had more than $5.8bn of FTT on it’s books, by far the largest contributor to its $14.6bn assets. The optics of a crypto trading firm having such large holdings of a token issued by an exchange co-founded by someone who set up said trading firm is clearly far from optimal.

To make matters worse, the outstanding circulating supply of FTT is only around $3.0bn, meaning the price that the assets are marked on Alameda’s balance sheet look less like mark-to-market and more like mark-to-myth as it would be impossible to liquidate their FTT at anything like the price they are marked on Alameda’s books.

Naturally, this has provided considerable fuel for the sceptics, who have been quick to make comparisons with the crypto lending firm Celsius Network that went bankrupt in July amid accusations that it had been inflating its balance sheet by manipulating its native token CEL.

CZ’s decision to tag LUNA in a follow-up tweet, clearly did little to damp such speculation.

"Unless they’re able to clarify things with regard to the balance sheet and/or do some big capital raise, zero upside to keeping funds there."

"So continued liquidations, hammers collateral valuations making insolvency more likely. Surprised BTC and ETH not hammered more.

I’m really hoping we can avoid that cascade but it’s hope at this point."

 Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.— CZ 🔶 Binance (@cz_binance) November 6, 2022 

Sam Bankman-Fried, whose FTX platform has rapidly become a dominant venue for investing in virtual coins, going toe-to-toe with Terry Duffy, the longtime chief executive officer of CME Group Inc. at the event in Florida.

Among the topics broached in their intense conversation was an FTX proposal to execute every aspect of customers’ crypto derivatives trades on its own -- thus bypassing other exchanges, banks and financial intermediaries.

 🚨This just in 🚨

Two new FTT perpetual contracts are dropping on BitMEX today:$FTT $USD $FTT $USDT 

Contract deets👇https://t.co/7UkiQ57Ki1 pic.twitter.com/2rsi6r5v77— BitMEX (@BitMEX) November 8, 2022