Analysts dismiss FTX insolvency fears
“There were questions about a large ($580m) FTT deposit to Binance, and we were transparent about the fact that we are closing our FTT position,” part of one of Zhao’s tweets read.
Bankman-Fried’s appeal, meanwhile, appeared to fall on deaf ears. Overnight, FTX saw a surge in withdrawals, with monitoring resources even showing negative BTC balances for the exchange’s wallets.
“Pushed to the brink by a debt crisis & an announcement from its #1 competitor, ~$1b has bled out from the platform in the last few days.”
In another of many reactions to the ongoing turmoil, Dylan LeClair, senior analyst at UTXO Management, argued that while it might not be over financially for FTX, the transparency of its operations was cause for concern.
“I don’t think it’s probable that FTX is insolvent, but I think the Alameda worries are notable, if nothing else,” part of Twitter comments stated.
“I don’t think FTX goes down. Might be, but I don’t think so,” Michaël van de Poppe, founder and CEO of trading platform Eight, continued:
“Binance simply wants to sell the position due to the reasons discussed, through which a sell-off was initiated. Bit different from $LUNA and Celsius, but has similarities as well.”
Bitcoin gives up $20,000 mark
For Bitcoin, the outlook remained cloudy as cold feet took hold of market sentiment.
BTC/USD recovered just $400 from its lows on the day, making $20,000 once more out of reach.
Further volatility was on the horizon, meanwhile, as the United States midterm elections combined with Consumer Price Index (CPI) data due for release on Nov. 10.
For its part, FTT managed to stage a modest comeback on the day after falling to lows of just above $15.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.