Nansen Suggests Link Between Terra And FTX Collapse

Nansen, a blockchain analytics company that was founded in 2019 and is currently one of the most successful businesses in the industry, has made public its belief that there is a connected chain between the crash of Terra and the demise of FTX. The company also stated that the demise of FT

 

It seems likely that Terra's decline was the cause of FTX's demise.


Even a little over a week after it took place, the collapse of the related firms is having a big impact on the bitcoin market. A significant number of parties with a stake in the cryptocurrency industry have voiced their thoughts in public.

Nansen, a leading blockchain analyst in the cryptocurrency sector, published an article on his blog on November 17, 2022, in which he speculated that the failure of FTX and the decline of Terra were connected in some way.


According to Nansen, there was never a clear distinction between the two companies, FTX and Alameda Research. FTX's aim to keep Alameda's activities continuing began to come apart around the same time as Terra USD fell.

Nansen asserted that the collision that occurred with Terra/Luna revealed a significant flaw in the stormy connection that kept FTX and Alameda together. This was based on the company's study.

Alameda's Assets Are Not Tradeable

A second issue that has been brought to the notice of the general public is the fact that Alameda's assets cannot be located. It is important to keep in mind that previous to the launch of the FTX in May 2019, wallets affiliated with Alameda Research were linked to wallets that were managed by the FTX.


It was discovered a few weeks ago that about $5 billion of Alameda's assets were FTX Tokens, which rendered a significant portion of the company's holdings completely untradeable.

After hearing the news, a significant number of FTT owners promptly cashed out their tokens and withdrawn funds from the FTX market. As a result of the breakdown of negotiations on an acquisition deal with Binance, FTX has initiated the Chapter 11 bankruptcy process.

According to the findings of Nansen's investigation, it seems that there has been a deliberate attempt to mislead the general public, which has resulted in their making an incorrect assumption. In spite of claims made in several business publications claiming it only owns half of that quantity, the analysis revealed that FTX actually held more than 80% of the 350 million supply of the commodity in question. This would make perfect sense as an explanation for the sequence of events.

A thorough reading of the report reveals information that suggests there may, in fact, have been an insider involved in both of the crashes.


Ojike Stella

1727 Blog posting

Komentar
Jubilee Ohwodiasa 30 di

Interesting

 
 
Francis Precious 36 di

Infomative