Sol ,Buying Opportunity Due To Alameda Offloading?
FTT Death Spiral
Could we see a sub $10 Solana over the coming days as this would be a perfect buying opportunity if that is the case.
Don't worry about the FTX exchange as what is going to hurt Crypto is the Alameda trading arm. FTX we already know has been acquired by Binance if they are happy after doing the due diligence. This is not a binding agreement and they can pull out at any time so who really knows if FTX us safe or not.
Almeda on the other hand has to sell FTT to cover the loans guaranteed against FTT. Blockfi could also be in trouble again depending on how much Almeda was involved in propping them up when the Luna collapsed happened. There is a reported $2.3 billion which is far less now that FTT is in single digits as there is only one outcome and that is another ship wreck. I take it that $2.3 Billion valuation was taken when FTT was in the $30 price range so that figure requires 3 x the amount of FTT to cover that now and hence a death spiral is the only result.
When things go south they go south very quickly and having reached a low of $8.20 a short while ago that will seem like a high by tomorrow morning. The loans that Almeda has is the worry as now they need to sell off anything that can create value before it is too late.
CoinDesk previously reported that a copy of Alameda's balance sheet shows the firm held $292 million of “unlocked SOL,” $863 million of “locked SOL” and $41 million of “SOL collateral.”
With this information it is not surprising to see SOL down at $25.03 and down over 23% on the day. This is an opportunity as this could go lower over the course of tonight and tomorrow morning. That is a shed load of Sol that could hit the exchanges.
There is always an opportunity in the face of disaster and luckily this could bring about an opportunity I never expected. FTT is not an opportunity as what use case does it have and if Binance sold their stake then they see no use for this now. Still I would keep an eye out as who knows in Crypto as dead is not always dead and may be worth a small gamble depending if Binance consider still using it or not. Nothing is clear in crypto until it is too late so always be careful in what and how you invest.
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