Onchain Research Shows FTX’s Falling BTC, ETH, Stablecoin Balances “Suggests Cracks Formed Back in June” – Bitcoin News

While analytics firm Nansen released a report stating that the Terra debacle ignited financial troubles at FTX and Alameda Research, on-chain data from intelligence and research firm Glassnode suggested that FTX’s “cracks had formed as early as May-June” . Glassnode’s report highlights “the growing number of [onchain] Data” shows that FTX’s cryptocurrency reserves have dropped significantly after Terra’s impact.

Glassnode Report Highlights How FTX’s BTC, ETH, and Stablecoin Balances Dropped Dramatically After Terra Ecosystem Collapse

Much attention has been focused on “FTX Account Drainer” address as an unknown entity that has been offloading large amounts of ETH until today. Additionally, FTX’s Bitcoin (bitcoin) wallet holds 20,176.84 bitcoins on November 5, 2022, while bitcoin Currently worth $326.43 million disappeared without a trace.

Onchain Research Shows FTX's Falling BTC, ETH, Stablecoin Balances

Blockchain intelligence and research firm Glassnode’s weekly onchain newsletter explains bitcoin Reserves held by FTX dropped significantly at the end of June. Glassnode also noted that monitoring FTX’s Bitcoin reserves is a complex process.

“Tracking FTX’s foreign exchange reserves has been a challenge for many data providers over the years, and in our own experience, FTX uses a relatively complex strip-chain system to conduct their transactions. bitcoin reserves,” Glassnode’s on-chain newsletter details. “FTX reserves within our cluster peaked at over 102k in April-May of this year bitcoin. This was a sharp drop of 51.3% in late June. The Glassnode research report added:

Reserves have continued to decline since then, until they hit virtually zero during this week’s bank run. As allegations of Alameda’s misappropriation of customer deposits came to light, it suggested that the Alameda-FTX entity may in fact have experienced significant balance sheet impairments in May-June following the collapse of LUNA, 3AC and other lenders.

Glassnode: “Increasing on-chain data suggests cracks formed as early as May-June”

According to Glassnode’s report, FTX’s Bitcoin Reserve cache isn’t the only storage that has seen a significant decline since Terra’s crash. The researchers detailed that in June, FTX’s Ethereum (Ethereum) Reserves fell 55.2% as 576,000 Ether left exchanges.When FTX’s financial cracks really started to emerge, after Binance’s CEO Changpeng Zhao (CZ) disclose Binance is dumping all of its FTT tokens, says Glassnode Ethereum Balance dropped from 611,000 Ethereum to 2,800 Ethereumlost 99.5% of ether reserves.

“Similar to a bitcoin balance, this is almost [ethereum] In FTX-owned wallets, the bank run effectively cleaned up what was left on the balance sheet,” Glassnode elaborated.

Onchain Research Shows FTX's Falling BTC, ETH, Stablecoin Balances

According to Glassnode, the stablecoin reserve “from [Oct. 19, 2022], falling from $725 million to virtually nothing over the next month. The onchain research report noted that FTX’s stablecoin balance hit a new high in June when the crypto economy slumped.

Onchain Research Shows FTX's Falling BTC, ETH, Stablecoin Balances

Glassnode’s newsletter says there’s still a lot of confusion surrounding FTX and Alameda’s demise, but on-chain data is similar to Nansen’s discovery, indicating that the problems started after Terra’s ecosystem collapsed. Glassnode researchers concluded:

Although there is still a lot of uncertainty about what exactly happened between FTX and Alameda, there is a growing [onchain] Data indicate that cracks formed as early as May-June. This would make the last few months merely a harbinger of the inevitable collapse of the exchange.

You can read Glassnode’s weekly on-chain newsletter which covers everything from the FTX debacle here.

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What do you think of Glassnode’s on-chain analysis of all the Bitcoin, Ethereum, and stablecoins that left the FTX platform after the Terra crash? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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