TRON DAO founder, Justin Sun, has said he is “putting together a solution with FTX to initiate a pathway forward” after leading cryptocurrency exchange Binance announced it decided to “not pursue the potential acquisition” of FTX.

Cryptocurrency exchange FTX saw outflows of 19,947 BTC, then worth over $340 million, on November 7, the largest figure since September 10, 2021, when the exchange recorded more than 45,000 BTC outflows.

Panic-selling has seemingly taken over Solana’s SOL token, with its seven-day implied volatility, a measure of expected price turbulence in the short term, skyrocketing to an annualized 270%. Its 30-day implied volatility has surged to 190%, compared to Bitcoin’s 95%.

Top stories in the Crypto Roundup today:

• Justin Sun Moves to Rescue FTX After Binance Drops Acquisition Deal
• FTX Outflows Neared 20,000 BTC in a Day During Liquidity Crisis
• Panic Selling Takes Over Solana Investors as Volatility Soars
• FTT Open Interest and Funding Rates

Justin Sun Moves to Rescue FTX After Binance Drops Acquisition Deal

TRON DAO founder, Justin Sun, has said he is “putting together a solution with FTX to initiate a pathway forward” after leading cryptocurrency exchange Binance announced it decided to “not pursue the potential acquisition” of FTX.

Binance dropped out of the FTX deal, citing concerns surrounding the exchange’s business practices and investigations by US financial regulators. FTX’s CEO, Sam Bankman-Fried, told investors on Wednesday that the firm needed up to $8 billion after a bank run saw it halt withdrawals.

In a statement, Justin Sun said that he would “stand behind all Tron token holders on FTX,” and that he was working with FTX to “initiate a pathway forward.” Sun added:

“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.”

Sun is the founder of TRON DAO and has invested in a number of blockchain projects, including Steem and BitTorrent.

Venture Capital firm Sequoia Capital, which invested $150 million in both FTX and FTX.US, has marked the value of its investment down to zero. The VC firm defended it conducted adequate due diligence at the time of investment, saying then FTX was a profitable company that had around $1 billion of revenue and $270 million of operating income.

Reuters has reported that Sam Bankman-Fried’s trading firm, Alameda Research, suffered a series of losses from deals, and that Bankman-Fried transferred at least $4 billion in FTX funds secured by assets including FTT and sharein trading platform Robinhood Markets to support it.

A portion of these assets were customers’ deposits. A reportedly leaked Slack message from Bankman-Fried has revealed he plans to “do right by customers.”

FTX Outflows Neared 20,000 BTC in a Day During Liquidity Crisis

Cryptocurrency exchange FTX saw outflows of 19,947 BTC, then worth over $340 million, on November 7, the largest figure since September 10, 2021, when the exchange recorded more than 45,000 BTC outflows.

The Exchange recorded the largest number of withdrawal transactions in its history on November 7 as users were concerned about the current situation and potentially allocating their assets to other trading platforms.

The liquidity crisis was preceded by declining volatility in the cryptocurrency space, with both BNB and SOL hitting their lowest-ever 30-day volatility on October 22, at 26.4% and 48.7%. The increase in volatility surged when Binance said it was divesting its holdings in FTX’s native FTT token, and quickly picked up from there.

FTT’s volatility jumped from 53.3% on November 7 to 492% on November 8 after the token lost over 74% of its value on the day. FTX’s fall from grace is likely to be a new addition to the file that keeps a record of all the events in crypto that suggest watchdogs should come down heavily on the industry.

Read more on CryptoCompare’s deep dive into FTX’s fall from grace.

Panic Selling Takes Over Solana Investors as Volatility Soars

Panic-selling has seemingly taken over Solana’s SOL token, with its seven-day implied volatility, a measure of expected price turbulence in the short term- skyrocketing to an annualized 270%. Its 30-day implied volatility has surged to 190%, compared to Bitcoin’s 95%.

The cryptocurrency’s seven-day call-put skew has dropped to a low of -99%, showing there is record demand for bearish puts relative to bullish calls. Investors buy puts when anticipating price drops.

Solana’s price is believed to be dropping as FTX’s sister company Alameda Research liquidates its SOL holdings. The token has lost 12% of its value over the last 24 hours, and over 55% over the past few days.

The cryptocurrency is also being affected by an incoming large supply unlock that has spooked investors in both the spot and derivatives markets.

FTT Open Interest and Funding Rates

The bank run on FTX has had significant implications for FTT’s price and liquidity. FTT’s open interest on FTX has risen by 66.2% to $130 million over the past three days, reaching its highest record since April 2022.

The open interest surge was due to significant short positions traders took against FTT after the bank run started. Short positions are clearly represented in the swift change in funding rates into negative territory — rates fell to -0.013% at 4 pm on November 8th — the lowest recorded funding rates this year, signaling the bearish instance of traders prior to the acquisition.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.