- Alameda blew up in Q2 along with 3AC+ others.
- It ONLY survived because it was able to secure funding from FTX using as "collateral" the 172M FTT that was guaranteed to vest 4 months later.
Once vested, all tokens were sent back as repayment.
6/ Remember, the FTT ICO contract vests automatically.
Had FTX let Alameda implode in May, their collapse would have ensured the subsequent liquidation of all FTT tokens vested in September.
It would have been terrible for FTX, so they had to find a way to avoid this scenario.
7/ The timing makes sense.
Alameda and FTX essentially put all chips on the table in Q2 and used that cash to bail others out.
This solidified FTXs image as a solvent and responsible institution, which helped FTT's price.
"Seeking to prop up Alameda, which held almost $15 billion in assets, Bankman-Fried transferred at least $4 billion in FTX funds, secured by assets including FTT and shares in trading platform Robinhood Markets Inc,"
The loan that FTX made to save Alameda was likely in crypto.
They lent out their customer's crypto and that's why they weren't able to meet all of their withdraws, a large chunk of their balance sheet went to Alameda.
Today, 2 FTX whistleblowers confirmed it on Reuters:
Alameda either used that crypto to repay its short-term liabilities OR used it as collateral for another loan.
Therefore, SOMEONE ELSE is in possession of these TRX, BTT, JST.. and other tokens.
If those were used as collateral for another loan, that someone else is screwed.
Yes, the "Mock" Merge last night was eventually a success... but we did see some hiccups that might impact users when the real Merge takes place.
We've been working on it for nearly a year at @coinmetrics and thought I'd share some notes 👇
Nearly all clients (nodes) struggled to determine what was the final block of the PoW chain last night.
That's because of the high rate of reorgs (changes in block ordering) witnessed in Goerli/Prater.
Multiple validators had to restart their nodes which led to a decrease in the number of peers/validators online.
Our primary node pair at @coinmetrics (Lighthouse + Geth) strangely saw the transition to PoS twice at slots 3639527 and 3639557 (roughly 5 minutes apart).