FTX Contract Deployer Unlocks 192 Million FTT, Exchange Token’s Questionable Tokenomics Highlights Red Flags

Following the illness of FTX and the speech filing bankruptcy connected Nov. 11, the trading platform’s speech token called ftx (FTT) has shed 91.6% successful worth during the past 7 days. While the FTT token’s inferior is based wholly connected the backing of the now-bankrupt FTX and Alameda Research, the token is inactive trading for $1.85 per unit. Moreover, FTT’s deployer declaration amazingly unlocked 192 cardinal FTX tokens connected Nov. 12, 2022. While a fewer crypto exchanges person halted FTT deposits, crypto coin aggregation sites similar coingecko.com person flagged the fig of coins successful circulation.

A Suspicious FTT Unlocking Event Puts Crypto Community connected High Alert

A interaction aft 9:00 p.m. (ET), the crypto assemblage noticed that the ftx (FTT) deployer contract moved 192 cardinal caller FTT tokens. No 1 knows wherefore this happened, but it has added 192 cardinal antecedently locked tokens to the proviso of 133,618,094 FTT that was circulating anterior to the transportation past night.

Coingecko.com’s website notes that the “FTX token Contract Deployer has transferred retired the entirety of supposedly locked FTT tokens into circulation.” In a now-deleted tweet, Binance CEO Changpeng Zhao (CZ) tweeted that Binance has halted FTT deposits. CZ said:

Binance has stopped FTT [deposits], to forestall [the] imaginable of questionable further supplies affecting the market. We volition show the situation.

Similar to the Terra fiasco, the FTX implosion took spot successful a substance of six days aft Alameda Research’s balance sheet was made public, and Binance CEO Changpeng Zhao told the nationalist his speech would beryllium dumping each of its FTT tokens.

On Nov. 5, 2022, ftx (FTT) was trading for $25 per FTT and by Nov. 8, it was beneath $5 per coin. FTT was a token launched soon aft FTX was created, and it was privately launched successful July 2019 by the FTX and Alameda teams.

Imagine McDonald's makes its ain money, let's telephone them clown-bucks, keeps astir of it, and sells immoderate to the market.

McDonald's past uses their remaining clown-bucks arsenic collateral for existent loans.

And past radical retrieve clown-bucks aren't real.

— Lyn Alden (@LynAldenContact) November 8, 2022

FTX White Paper Claims FTT Is Backed by an ‘All-Star Team’

FTT was made to springiness owners FTX-based rebates erstwhile they traded connected the speech oregon leveraged FTX OTC. Anyone holding betwixt $1 cardinal to $5 cardinal worthy of FTT could get automatically upgraded to a VIP presumption if they utilized some services.

Out of the archetypal 350 cardinal FTT tokens, 175 cardinal were designated arsenic “company tokens that unlock implicit a three-year period.” 73,461,920 FTT tokens were sold and vested by “July 21st, 2019,” according to FTX’s transparency page saved to archive.org.

FTX’s transparency leafage astir the clip erstwhile the IEO was taking spot successful July 2019.

While ftx (FTT) tokens offered rebates for FTX users and VIP perks for ample holders, FTT’s white paper highlights that astir of FTT’s worth stems from an “all-star team.” The FTT achromatic insubstantial says that FTX is backed by Alameda Research, the quantitive crypto trading level started by Sam Bankman-Fried (SBF).

“Alameda trades $600 cardinal to 1 cardinal a day, accounts for astir 5% of planetary volume, and is ranked 2nd connected the Bitmex leaderboard,” the achromatic insubstantial boasts.

The FTT achromatic paper.

Following the driblet beneath $5 per coin connected Nov. 8, 2022, FTT’s token worth is down to nether $2 per token. While FTT is down 97.6% from the $84.18 per portion all-time precocious it reached connected Sept. 09, 2021, it’s managed to stave disconnected the highly accelerated decease spiral Terra’s LUNA (now LUNC) saw erstwhile it collapsed.

In fact, anyone who purchased FTT earlier Sept. 06, 2019, is inactive up by 74% against the U.S. dollar. 50 cardinal FTT tokens were sold for a terms scope betwixt $0.10-$0.20 during the archetypal speech offering (IEO).

10 Addresses Hold 93% of the FTT Supply — Despite the Negative News, FTT Still Trades for Under $2 per Unit

Data recorded earlier the deployer unlock had shown FTT erstwhile had a circulating proviso of astir 133,618,094 FTT. The FTT tokens that were purchased successful July 2019 unlocked aft the listing, “at a complaint of astir 3% per day. FTX besides did regular FTT repurchases and burns to bolster the coin’s tokenomics.

FTT is precise concentrated arsenic 22,837 addresses clasp the ERC20 token and 10 addresses clasp 93.22% of the FTT supply, according to coincarp.com richlist data. Into the Block statistics via markets.bitcoin.com, shows 96% of holders are astatine a nonaccomplishment successful presumption of profit.

The attraction of ample holders shows that 10 wallets power 93.22% of the FTT supply.

Into the Block’s attraction of ample holders metrics for FTT is 97% and FTT’s terms correlation with bitcoin (BTC) is astir 0.9%. In the past 7 days, successful presumption of transactions greater than $100K successful FTT tokens, $2.4 cardinal worthy of FTT has been settled this past week.

FTT saw a play precocious of 520 ample transactions connected Nov. 8, 2022, and astir 21 ample transactions successful the past 24 hours. The mean FTT transaction implicit the people of the past week was $55,266.27 worthy of FTT tokens.

Most of FTT’s commercialized measurement during the past 24 hours derived from exchanges similar Binance, Gate.io, Hitbtc, Huobi, and Kucoin respectively. Over 60% of FTT trades are against tether (USDT) which is followed by BUSD, BTC, BNB, and ETH respectively.

Despite each the atrocious quality surrounding FTX’s illness and the immense attraction of FTT holders, dissimilar LUNC, the token has not plummeted to zero. After the quality broke astir the FTT deployer declaration unlocking the remainder of locked FTT tokens, FTT is down much than 7% little against the U.S. dollar. During the past 24 hours, FTT has been swapping for $1.79 to $2.20 per unit.

What bash you deliberation astir the FTX speech token FTT? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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