We present a complete guide to understanding FTT Token Cryptocurrency and it’s technology in the field of cryptocurrency development. We include helpful explanations, illustrated guides, historical data, and technical details. This article is brought to you by Digital Financial Market
The FTX Token (FTT) Cryptocurrency
The FTX Token (FTT) was intended to be the blockchain for the previously operating FTX Exchange prior to its insolvency in late 2022. Although FTX Exchange has undergone bankruptcy, the FTT cryptocurrency still operates as a decentralized blockchain.
Key Points of FTX Token (FTT)
- Created and facilitated by FTX Exchange
- Key Cryptocurrency of the FTX’s collateral insolvency (Nov 2022)
- Lost significant value from FTX Bankruptcy
- Didn’t collapse completely, but lost -95%
FTX Token (FTT) Price Chart
FTX Token (FTT) Historical Price Chart
The Story of FTX, Alameda, & SBF
The FTX & Alameda Research Connection
For many years, It has been widely known that Sam Bankman-Fried of FTX worked very closely to create the trading firm Alameda Research and held equity in each others corporations. Unraveling in late 2022, this connection involved billions of dollars of fraudulent financial practices across the two business entities.
SPF held a close relationship with Alameda research CEO, Caroline Ellison. They were previously together in a relationship and shared many communications across FTX and Alameda Research.
At the time of Sam Bankman Fried’s arrest, the criminal allegations into other members of the executive teams behind Alameda research and FTX are still under investigation.
Sam Bankman-Fried Arrested in Bahamas Facing Fraud Charges
Dec. 14th, 2022
The United States Securities and Exchanges Committee have pressed charges to Mr. Sam Bankman-Fried on multiple counts of wire fraud, money laundering and bank fraud.
The authorities of the Bahamas have made an arrest on behalf of the 8 counts of fraud. The US House Committee has confirmed that Sam Bankman-Fried was aware of a [backdoor for unlimited access between FTX and Alameda Funds].
In the indictment, the CFTC confirms that Sam was well aware that Alameda research was Insolvent as early as September 2022.
Scandals & Allegations: Political Lobbying Customer Fund
Sam Bankman-Fried became the #2 donor to the Democratic campaign of US Elections of 2022. Followed closely behind democratic donor George Soros, SBF contributed amounts of over $36 Million to various Democrats priory to the 2022 election.
In a separate interview, Sam admitted to donations of equal proportion to opposing republicans, but claimed he “donated dark” and hid the transactions to avoid harsh publicity.
At the time of Sam Bankman Fried’s arrest, the criminal allegations into other members of the executive teams behind Alameda research and FTX are still under investigation.
The Timeline of The FTX Meltdown
There is still ongoing investigation into the specifications of the fraud charges placed against SBF, however the recent public statements from the former FTX CEO have detailed a timeline that leads us to this sequence of events:
- July 2022: Insolvency risk grows during LUNA meltdown
- Sept 2022: Alameda Research is insolvent (CFTC Confirmed)
- Oct 2022: Binance Audits FTX
- Nov 2022: Sam Bankman-Fried & FTX File for Bankruptcy
- Dec 2022: Sam Bankman-Fried Arrested in Bahamas
Keep in mind that during this time, many of FTX’s heavily weighted digital assets such as SOL, FTT, and SRM saw a drop of over 95% since their all-time-highs in 2021.
The Root of The Issue: Fraud, Leveraged Positions, Poor Corporate Controls
The FTX exchange as well as Alameda Research has been credited with creating Cryptocurrencies and exchanges namely Serum (SRM) and FTX Token (FTT).
Along with establishing one of the largest cryptocurrency exchanges in the world, the FTX senior management team aligned themselves with levels of fraud akin to Bernie Madoff.
Poor corporate controls and no oversight of accounting practices resulted in a little regulation in place for FTX top executives.
Alameda Research & FTX Contributed to Solana Collapse of 2022
The companies also held a significant stake in the Solana (SOL) Cryptocurrency, as Serum operates on the Solana chain. This led to their volatile liquidation of the SOL token, over 70% of the Total Value Locked (TVL) of Solana was withdrawn and liquidated. This promptly dropped the price of Solana by 50% in one day, occurring in November of that year.
See our Article on Solana (SOL) Cryptocurrency
Binance Involvement in FTX Collapse
The Collapse of the FTX platform was catalyzed by the audit and due diligence of Binance, a major Crypto Exchange competitor that recognized “serious concerns” prior to writing a commitment to purchase the FTX exchange in a buyout.
Binance CEO CZ (Changpeng Zhao) made public his concerns as well as sold the entirety of the company’s holdings of FTX Token (FTT) of almost $2 Billion in holdings.
During this 24 hour period the FTX Token saw a rapid drop of over -95% from over $25 to less than $2 in valuation the next day.
The FTX Effect: Lasting Losses
The effect from the collapse of FTX has led to multiple insolvencies, including the finalization of three arrows capital bankruptcy.
The cryptocurrency industry, as a whole, has suffered greatly from this loss. This chapter is still unfolding as the securities and exchange committee is continuing to investigate the fraud behind FTX.
FTX Token FAQ
Why Was Sam Bankman-Fried Arrested?
Why Is FTX Bankrupt?
Why Was SBF Arrested?
Who is SBF?
What Caused FTX To Go Bankrupt?
What Caused FTX Crash?
What Caused FTX Collapse?
What Is The FTX Scandal?
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