Sixty percent of all the FTX Token (FTT) in existence has suddenly been transferred between crypto wallets as the fallen crypto exchange’s dramatic collapse continues.
First reported by blockchain tracking service WhaleAlert, Etherscan data shows 195,869,335 FTT worth $389,233,378 leaving FTX’s contract address and into an unknown wallet.
The FTT sent was originally part of its “locked” supply, or tokens that can’t be transferred or traded until unlocked in batches. FTT’s entire maximum supply of 328,895,112 tokens has now been deployed.
At time of writing, crypto data aggregator CoinGecko currently has a warning label on FTT.
“FTX token Contract Deployer has transferred out the entirety of supposedly locked FTT tokens into circulation. Proceed with caution.”
FTX and its trading arm Alameda Research collapsed last week after becoming insolvent, and its top executives have yet to report a precise explanation on what happened. Following news of the collapse, FTT caved-in and dropped over 92% within 6 days, and remains nearly 98% down from its all-time high, currently changing hands for $1.89.
Venture Coinist founder and crypto analyst Luke Martin says that the whale transfer could be FTX’s liquidators or bankruptcy firm taking control of the tokens, but also notes that it would be odd for such proceedings to be happening late on a Saturday night.
Binance CEO Changpeng Zhao also commented on the big FTT movement, saying he wasn’t clear on what was happening.
FTT contract deployers moved all remaining FTT supply worth $400 million, which should be unlocked in batches. Not too sure what's going on.https://t.co/JBPd02xIRk
— CZ ? BNB (@cz_binance) November 13, 2022
At time of writing, the FTT in the new wallet appears not to have moved, and it’s not clear whether there is enough liquidity left in its market to absorb the shock if it were to be sold on the open market.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/DRN Studio
