FTX’s Beginning of the End Traced Back to This Alameda Tweet: Analysis
Alameda’s CEO made a suspicious offer to CZ, which the latter ultimately refused. After Hacktober, which saw countless DeFi projects being exploited for hundreds of millions of dollars in total, November was expected to be a calmer month for crypto. However, that was not the case as the industry saw one of the fastest, loudest, and most shocking deterioration of a giant — FTX.
According to some estimations, Binance held more than 23 million tokens, valued at over $500 million back then. This was approximately 10% of FTT’s market cap at the time. Alameda’s CEO, Caroline Elison, quickly responded to CZ, offering to purchase all FTT coins at $22 per one. The problem stemmed from the fact that this offer was below the market’s price. Zhao refuted the proposition, saying Binance will “stay in the free market.” But there might be bigger ramifications from Elison’s tweet than just trying to buy tokens below their market price.