Sam Bankman-Fried's companies doing well, but why the Alameda/ FTX story?

Ari Sears
8 mins

Did this Coin Metrics analyst uncover the key to the whole Alameda/ FTX story? Because let's face it, it doesn't make sense. Both of Sam Bankman-Fried's companies seem to be doing well, so why would he want to engage in this kind of activity?

It is clear that the Coin Metrics analyst has uncovered something important in the on-chain data regarding the Alameda/ FTX story. It is apparent that there is more to this story than meets the eye, and that there is a strong possibility that Sam Bankman-Fried was motivated by something other than pure profit. This is a story that is sure to continue developing, and it will be interesting to see what else is uncovered in the data.

It's always important to remember that data interpretation is subjective. In the case of the Coin Metrics analyst, their interpretation of on-chain data is highly speculative. However, the data itself is solid. So, while it's important to take this analysis with a grain of salt, it's also worth considering what could have happened based on the available evidence.

That being said, it is clear that our world is in a state of flux.

The Case for Coin Metrics: Why This Analyst Thinks Cryptocurrency Is Here to Stay

I found evidence that FTX might have provided a massive bailout for Alameda in Q2 which now came back to haunt them. 40 days ago, 173 million FTT tokens worth over 4B USD became active on-chain. Where did those tokens go? You guessed it, Alameda Research. The day was September 28th. A record-breaking $8.6B in FTT moved that day. This mystery has yet to be solved, but it seems clear that FTX provided a massive bailout to Alameda Research in the second quarter of this year. Now, 40 days ago, those tokens became active again on the FTX exchange. It's still unclear why they were transferred or what will happen next, but this story is sure to continue developing. Stay tuned for more updates.

There's nothing particularly special about the move that FTT made on that day, according to Nuzzi. However, it's still one of the largest ERC20 daily moves that Coin Metrics has ever recorded. This just goes to show that even on a quiet day in the market, there can be some big winners.

  • I'm saddened to see Sam Trabucco step down from his role as Co-CEO at Alameda Research. He's been a great leader and friend, and I know he'll continue to be an advisor and help the company in any way he can. I wish him all the best in his future endeavors.
  • It's been a wild ride for Brett Harrison as CEO of FTX. After leading the company for just over a year, Harrison is stepping down from his position. In a tweet announcing the news, Harrison said he would be moving into an advisory role at the company in the coming months. No doubt Harrison will be missed as CEO, but we're excited to see what he'll do next in his advisory role at FTX.
  • It's always good to see companies taking security seriously, and it's even better when they're transparent about it. Sam Bankman-Fried's recent tweet about rotating FTX wallets is a great example of this. While it's not clear exactly how many wallets are being rotated, it's reassuring to know that FTX is taking proactive measures to keep user funds safe.

It is likely that the last SBF tweet will be used as evidence in court.

Alameda County Spends $600,000 on New Voting Machines

It's strange that the FTT tokens came directly from the original ICO smart contract. The Coin Metrics analyst found a transaction that interacted with a contract from the FTT ICO. This 2019 contract *automatically* released 173 Million FTT from the token's ICO. It's even stranger that both organizations are joined at the hip.

There's nothing here to write about!

The Coin Metrics Analyst’s Theory: How to Make Money in the Cryptocurrency Market

According to Lucas Nuzzi, Alameda Research wasn't immune to the crypto contagion that plagued the space in Q2. In fact, the company might've blown up with 3AC, Voyager, and Celsius. "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." That's an extremely risky move. It almost seems like FTX didn't have a choice. It's incredible that Alameda Research was able to secure funding from FTX using the 172M FTT as collateral. This move was extremely risky, but it paid off in the end. It's a good thing that FTX was there to help out, because otherwise Alameda Research might not have survived.

It's clear that the team at FTX paid a heavy price for their decision to bail out Alameda Research. While it's impossible to know for sure what would have happened had they let Alameda implode, it's likely that the collapse of the firm would have led to the liquidation of all FTT tokens. This would have been a disaster for FTX, and it's understandable that they chose to act in order to protect their investors. However, the price of FTT has collapsed since then, and it's possible that FTX is now insolvent. This is a cautionary tale for all cryptocurrency exchanges, and it highlights the importance of having robust risk management procedures in place.

CZ and Binance to the rescue?

If CZ and Binance somehow found out about the deal between FTX and Binance, it could have major implications for the cryptocurrency markets. As the largest exchange by trading volume, Binance could use its significant holdings of FTT to deliberately drive down the price of the token, forcing FTX to face a liquidity crunch. This could have a ripple effect across the entire cryptocurrency market, causing prices to tumble.

And they did. They found a way to work together and accomplish their goals. It was a beautiful thing to see.

It is clear that the crypto industry is in a state of flux. Traditional financial institutions are starting to take notice of the potential of digital assets, and are beginning to make moves to acquire companies in the space.

I think it's safe to say that none of us would mind finding a way to save a few pennies here and there. After all, who doesn't love a good deal?

This could be a master stroke if it turns out to be true. If this proves to be the case, it could have far-reaching implications.

It's important to remember that the Coin Metrics analyst's warning about the possible reasons behind the recent Bitcoin price crash is just their personal speculation based on on-chain data. While this data may provide some clues, it's ultimately impossible to say for sure what caused the crash. So, take this warning with a grain of salt and don't make any major investment decisions based on it.

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