What happened around FTX and Binance has been catastrophic for the entire cryptocurrency market. But worse will emerge in the coming hours. Millions of dollars of unlock time is approaching for some cryptocurrencies.
Hours left until the $ 320 million unlocking for these cryptocurrencies
In the coming hours, approximately 18 million Solanas (SOLs) that FTX and Alameda fund locked in 2018-2019 will be unlocked. These cryptocurrencies will enter circulation soon after exiting staking.
The average price of Solana staked by the FTX and Alameda fund during the 2018-2019 period was $1. Now even if the SOL price drops below $10, companies are making huge profits. However, the Solana price faced a disaster scenario before that. Solana investors wasted over 50% in just 3 days. SOL is currently trading around $18, down 33% compared to the last 24 hours. What happened in the middle of FTX and Binance in the fall was directly affected.
1.7 million Solana, including liquid
In the middle, the market is gearing up for the Solend whale liquidation as the Solana price actually plummets to 2020 highs. These whales borrowed 30 million USDC against collateral of two million SOL at previous values. In addition to the 18 million SOLs that will come out of staking in the next 24 hours, the liquidation of Solend whales means another potential disaster.
Technically speaking, this liquidation was actually triggered. Current prices have exceeded the whales’ liquidation threshold by more than 50%. This means that the liquidation of 2 million SOLs depends only on time. As a result, Solend whales are also hit hard by the FTX and Alameda debacle.
Binance prepares to buy FTX as cryptocurrencies fall
The world’s largest cryptocurrency exchange by trading volume confirmed its plans to acquire its biggest rival, FTX, on November 8. FTX took a major hit from rival Binance following the initial rumors about a possible imbalance in Alameda Research’s financial structure based on a Coindesk report dated November 6th. The chairman stock exchange announced that it will sell its $500 million share of FTT, as it is uneasy that Alameda Research’s entire balance consists solely of FTT. This was initially devastating for the entire market, not FTT.
FTT is currently trading at $4.46. It fell hard from around $22 to $2.5 on November 9.
In the middle, FTX and Alameda had to sell their holdings of Bitcoin and other cryptocurrencies to make up for the drop. In fact, Bybit CEO Ben Zhou even accused FTX of violating its agreement not to sell BitDAO (BIT) tokens.
Events soon spread to DeFi projects related to FTT. Koindeks.comAs you follow, Magic Internet Money (MIM), which uses FTT as collateral, lost its dollar stability.