Cryptocurrency exchange FTX and affiliated trading firm Alameda Research have continued transferring sizeable amounts of digital assets off their platforms. According to on-chain data analysis firm LookOnChain, FTX/Alameda moved over $20 million worth of cryptocurrencies today.
The biggest transfers included 2,780 ETH ($5 million), 47.16 million GRT tokens ($4.9 million), 1.14 million DYDX tokens ($2.6 million), and 972,073 REN tokens ($2.3 million). Other large transfers consisted of 71.6 million GALA tokens ($1.37 million) and 192,906 AXS tokens ($1.06 million).
As of November 1st, FTX/Alameda have now shifted approximately $127.5 million total in cryptocurrency holdings. The repeated outflows have led to speculation about the company’s financial situation and relationship with its sister firm Alameda.
There is no clear reason provided publicly for the ongoing liquidations. However, some analysts believe FTX may be selling assets to boost its cash reserves following heavy trading losses at Alameda.
The substantial crypto sales could also be an effort to separate FTX’s balance sheet from Alameda’s in the event lending relationships between the two cause problems. The markets have reacted nervously to the undisclosed transfers, with prices falling for some tokens like GRT and DYDX that saw large sums moved today.
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Traders will be watching closely to see if FTX continues liquidating significant amounts of crypto holdings in the near future. Any signs the company faces financial distress could undermine confidence and lead to further price drops across the digital asset sector.
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