In the last week, FTT prices have plummeted more than 12% after Alameda Research’s balance sheet was leaked.

More specifically, the leaked balance sheet exposed Alameda’s financial instability, worrying investors who have been taking their money out of FTX–including stablecoins.

This past week, the FTX exchange has seen a withdrawal of over $451 million worth of stablecoins, based on data from Nansen.

Data from the dripped Balance Sheet

According to the dripped Balance Sheet, Alameda Research had $14.6 billion in assets and about $8 billion in liabilities. Including loans amounting to $7.4 billion, as of June 2022.

Alameda has an unlocked cash value of $3.66 billion in FTX tokens (FTT). And $2.16 billion worth of FTT tokens are being used as collateral for other listed assets.

Besides the difference, investors are also worried that a lot of Alameda’s resource money is in FTT tokens instead of regular assets like dollars.

Alameda’s CEO Caroline Ellison took to Twitter later to explain. That the dripped balance sheet only showed part of the firm’s holdings, claiming they have an extra $10 billion in assets. However, this explanation did not ease market responses or investors’ fears.

Binance plans to sell a large number of FTT tokens

Binance earned over two billion dollars in BUSD stablecoin and the FTT tokens. When it ended its association with FTX equity this year.

Zhao Changpeng, the CEO of Binance, says that a large portion of FTT tokens will be sold (more than $500 million worth), according to his company’s plans.

FTT’s collateral crisis

FTT value is backed by a collateral pool consisting of cryptocurrencies such as Bitcoin, Ethereum, and USD stablecoins. The value of FTT tokens is maintained by the collateral pool which must always be worth at least 1.2 times the total value of FTT in circulation.

This means that if the market value of FTT tokens decreases, more collateral needs to be added to maintain the token’s value.

However, due to recent market fluctuations and the liquidation of Binance’s FTT holdings. The size of the collateral pool has decreased significantly. This has caused concern among investors about whether or not there will be enough collateral to support the current circulation of FTT tokens.

Does this involve Binance?

Yes, the liquidation of Binance’s FTT holdings contributed to the decrease in the collateral pool and subsequent dip in FTT value.

However, it is important to note that this is not a sign of insolvency on Binance’s part. The exchange is simply managing its assets and adjusting to market conditions as any responsible investor would.

It is also worth mentioning that while the value of FTT may be experiencing a temporary dip. The fundamentals of the token and its underlying technology remain strong.

The FTT team continues to work towards expanding adoption and integrating new features. Which will ultimately drive long-term growth and stability for the token.

Many investors are betting that the value of the FTX token will drop soon. Due to the recent increase in stablecoin withdrawals and an impending Binance liquidation.

However, we believe that investors should not sell their FTT in panic but rather view this. As an opportunity to buy at a discounted price and benefit from the long-term potential of the token.


In short, the recent dip in FTT value should not be cause for alarm. Binance is managing its assets and adapting to market conditions, and the fundamentals of the FTT token remain strong. This is simply a temporary bump in the road on the path towards long-term growth and success.

Ultimately, FTT remains a strong player in the cryptocurrency market. And we have full confidence in the team’s ability to navigate through these challenges and come out stronger.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.