- Former FTX and Alameda officials were found guilty of manipulating Bitcoin price action by dumping users’ coins in the previous crypto bull market cycle.
- Market experts believe the news era of spot Bitcoin ETFs in the US is a chance to repair the crypto decay caused by the implosion of FTX and Alameda Research.
The puzzle on the FTX and Alameda Research implosion is in the final stages of being completely solved as the investigators put together the last pieces to ensure the genuine customers and creditors are fully compensated.
With former FTX boss Sam Bankman-Fried (SBF) waiting for the civil trial after he was found guilty of all the charges, the current administration led by appointed CEO John J. Ray III has been working on a plan to distribute the recovered funds to the impacted victims.
Interestingly, one of the FTX lawyers, Andrew Dietderich, recently argued that the defunct cryptocurrency exchange has sufficient funds to repay all allowed customers and creditors in full. However, a group of FTX customers have moved to the court seeking to compel the estate to add more funds to compensate for the value addition of the stored digital assets in the past year.
FTX and Alameda Research Accelerate Market Dumps to Repay Creditors
According to on-chain data analysis provided by market intelligence platform Spot On Chain, FTX and Alameda Research deposited altcoins worth $3.32 million to different crypto exchanges in the 24 hours leading to Tuesday. Notably, 1K Ethereum (ETH) worth approximately $2.3 million was sent to Coinbase Global, and 4.43 ALPHA tokens worth about $411k were deposited in Binance.
Other tokens deposited by FTX and Alameda Research to Coinbase Global and FalconX – including POWR, SNT, OXT, RLC, NMR, and NEXO – were worth about $609k. In the past seven days, the current FTX and Alameda Research officials deposited tokens worth about $15.1 million in different crypto exchanges.
FTT Absorbs Huge Impacts
As the FTX and Alameda Research restructuring process winds down, the FTT token is expected to either completely die in the coming years or become another zombie coin that may never grow in tandem with the crypto mass adoption.
As of this report, FTT traded around $1.61, down approximately 40% in the past seven days. Furthermore, the FTT token contract deployer recently transferred out the locked units into circulation, thus further diluting the existing liquidity and weighing heavily on the few buyers.
Market Impact on Bitcoin Price Action
Bitcoin’s (BTC) price has registered around 200% in gains since FTX and Alameda Research filed for Chapter 11 bankruptcy protection in the United States. The flagship coin has led the altcoin industry in a bullish rebound from the crypto bear market lows, thus negating all the losses experienced during the FTX-induced capitulation. As a result, the periodic market dumps from FTX and Alameda Research have largely been absorbed without draining the liquidity of the respective crypto assets.
Moreover, the approval of spot Bitcoin ETFs in the United States has been described as a historical moment that will significantly shift the entire crypto dynamics. Ideally, the high Bitcoin demand from global fund managers will comfortably absorb the periodic FTX market dumps.
