Collapse Of FTX's ETH Reserves Intensifies The Liquidity Problem
It seems that FTX just continues to sink lower and lower without any rest. The crypto exchange is under threat from a lot of different problems, which have made it unstable. For starters, things are not good between Binance and FTX (two crypto exchanges) - Binance has recently announced the liquidation of its FTT tokens which is not a good sign for FTX.
Furthermore, FTX users are now also facing delays in stablecoin transfers and Bitcoin procession. Considering how there are so many crypto exchanges out there, users are now leaving the FTX platform. As a result, the FTX problems are intensifying rather than getting solved!
And recently, the crypto exchange FTX has come up with another crisis... This time, the Ethereum reserves of FTX have dropped significantly! According to available data, around 300,000 ETH have moved away from the FTX reserves in the last 2 days alone. This means that the current ETH reserves of FTX are now 108246 - As a result, this has become the biggest drop since 2020.
FTX Is Working To Build Up Its ETH Reserves
It seems that FTX is also aware of the situation as the crypto exchange is working towards rectifying the situation. The exchange is relying on other crypto exchanges and subsidiaries to build up the ETH reserves. Recently, Alameda has moved 26600 ETH coins to the FTX exchange in the last few days.
As a result, Alameda now only has 9326 ETH in its reserves, and experts believe that the firm has also sent huge amounts of stablecoins to the hot wallets of FTX as well.
However, the problem still remains as it is for FTX users, especially those who are dealing with Bitcoin. On average, users are facing 5 - 10 hours of BTC transaction delays which is a lot more than normal.
Additionally, the redemption and creation of stablecoin in the FXT have also slowed down. But for this, FTX is blaming the banks who are involved in the slowdown.