FTT’s price has fallen more than 12% over the past seven days after a leaked balance sheet from Alameda Research, a sister firm of FTX, raised concerns about the firm’s finances.
The leaked document revealed discrepancies in Alameda’s accounts and prompted investors to withdraw funds — notably stablecoins — from FTX at an accelerated pace.
According to Nansen data, more than $451 million in stablecoins have been withdrawn from the FTX exchange over the last seven days.
What the leaked balance sheet revealed
The leaked balance sheet indicated that, as of June 2022, Alameda Research reported approximately $14.6 billion in assets against roughly $8 billion in liabilities, which included about $7.4 billion in loans. Among the assets listed were $3.66 billion described as “unlocked FTX token (FTT)” and $2.16 billion in FTT tokens held as collateral.
Beyond the apparent imbalance, investors grew concerned that a significant portion of Alameda’s reported assets were concentrated in FTT tokens rather than in traditional, liquid assets such as fiat currencies.
Alameda CEO Caroline Ellison later posted on Twitter clarifying that the leaked balance sheet represented only part of the firm’s holdings and that Alameda had an additional $10 billion in assets. Despite that clarification, market reactions and investor worries persisted.
Binance plans to liquidate a large amount of FTT
When Binance exited its equity position in FTX in 2021, the exchange received a package that included $2.1 billion in BUSD stablecoin and FTT tokens. Binance CEO Changpeng Zhao has stated that the company intends to sell a substantial portion of its FTT holdings — reportedly more than $500 million worth — on the open market.
The prospect of large-scale FTT sales by Binance, combined with the surge in stablecoin withdrawals from FTX, has put additional downward pressure on the FTT price. Market participants are responding by betting against the token as liquidity concerns and potential further sell-offs weigh on sentiment.