Nansen Report: FTX and Alameda Monopolize a Large Amount of Uncirculated FTT, Accelerating Its Collapse

ChainCatcher news, Nansen released the report "On-Chain Analysis: The Collapse of Alameda and FTX," which points out that FTX and Alameda have been closely linked from the very beginning. FTX's platform token FTT has been associated with Alameda since its creation. The two monopolized a large portion of the total supply of FTT, most of which has never truly entered the circulating market. The initial success of Alameda and FTX, along with the rapid rise of FTT, likely enhanced the asset value on Alameda's balance sheet. The FTT positions were likely used by Alameda as collateral for borrowing. If the borrowed funds were used for illiquid investments, FTT would become a significant weakness for Alameda.

With the collapse of Terra/UST in May, liquidity tightened, and many creditors began to recall loans following the collapses of Three Arrows Capital and Celsius. Alameda needed sources of funds that were still willing to lend against existing collateral to replenish liquidity. Alameda held approximately $3 billion worth of FTT on FTX, most of which remained untouched until after the events occurred. (source link)