FTX Token Falls 80% Despite Binance Bailout as Alameda Contagion Spreads to Bitcoin

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FTX Token Falls 80% Despite Binance Bailout as Alameda Contagion Spreads to Bitcoin
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The FTX exchange’s FTT token dump could theoretically wipe out billions from Alameda's balance sheet, deepening its financial woes, according to an analyst. Bitcoin (BTC) hits 23-month low. sndr_krisztian reports

), the largest cryptocurrency by market capitalization, tumbled to $17,114 on the Bitstamp exchange, a 23-month low. The BTC price recovered somewhat to $18,400 but was still down 12% on the day.Alameda balance sheetis loaded with highly illiquid FTT tokens, and is also a big holder of SOL tokens. Some of these tokens were put up as collateral to take out loans. As of June 30, Alameda held $3.66 billion of “unlocked FTT” tokens and $2.

"There’s a lot more pain to go around as Alameda will be heavily affected by the crash of FTT," Sheraz Ahmed, managing partner at STORM Partners, told CoinDesk."A multi-billion dollar loss will hurt.” "Assuming Alameda doesn’t survive, there could be a good deal of pain, particularly for the Solana ecosystem -- in which they were deeply involved -- and any institutions that had lent to Alameda," Riyad Carey, research analyst at crypto data firm Kaiko.

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