Fusion Market Analysis
This week’s Fusion Market Analysis we’re going to follow the timeline of events covering the FTX liquidity crisis. We will analyze the days leading up to the event with corresponding news & data.
Wednesday - November 2, 2022
A report from Coindesk sparked interest in FTX, when the leaked balance sheet of Alameda showed a massive position of FTT Tokens as collateral for the company.
Sunday - November 6, 2022
CZ, CEO of Binance, decides to liquidate all of its FTT Tokens from the findings of the Alameda balance sheet.
Alameda offers to buy all their tokens for $22 each.
Monday - November 7, 2022
The bank run begins, as a majority of FTX users start withdrawing their positions as FTX insolvency rumors spread.
SBF, CEO of FTX, claimed that “assets are fine” in a now deleted tweet.
CZ refuses the buy offer from Alameda.
Tuesday - November 8, 2022
FTT Token along with a majority of the crypto market begins to fall in value.
FTX offers to be acquired by Binance, who agrees to help with their liquidity crunch in a nonbinding letter of intent.
Wednesday - November 9, 2022
Binance decides not to pursue the potential acquisition.
Crypto asset prices start nosediving across the board.
FTX is unable to allow withdrawals for their users.
Thursday - November 10, 2022
SBF apologizes for the situation.
FTX withdrawals resume.
FTX US says they might stop trading for a few days.
Today - November 11, 2022
Alameda’s entire team collectively resign.
FTX is now left with $8.8B in liabilities.
Binance has revealed all the addresses of their reserves ($60B).
SBF resigns as CEO and the company declares bankruptcy.
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