FTX and Alameda move more Assets: $46M in SOL, ETH, Others to Kraken, Binance and Coinbase.

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3 Nov 2023

On November 2, 2023, FTX and Alameda Research, two of the largest cryptocurrency exchanges, moved an additional $46 million worth of Solana (SOL), Ethereum (ETH), Polygon (MATIC), and other assets to Kraken, Binance, and Coinbase. This is the latest in a series of large asset transfers by FTX and Alameda in recent months, and it has raised some questions about their motives, especially given that the court permits FTX to sell off a maximum of $50 million for the first week, with the limit increasing to $100 million in subsequent weeks.

What assets were moved?

According to on-chain data, FTX and Alameda moved the following assets to Kraken, Binance, and Coinbase:

•500,000 SOL ($21.6M) to Kraken
•14 million MATIC ($9.3M) to Kraken
•2,784 ETH ($5.15M) to Binance
•810,000 MASK ($2.51M) to Binance
•2.1 million SUSHI ($2.37M) to Binance

They also deposited $5.49M worth of six assets to Binance:

•1.14M DYDX ($2.64M)
•192,888 AXS ($1.05M)
•5,858 AAVE ($522K)

Why are FTX and Alameda moving so much money?

There are a few possible explanations for why FTX and Alameda are moving so much money around, especially given the court order to sell no more than $50 million for the first week, with the limit increasing to $100 million in subsequent weeks.

•Rebalancing their portfolios. FTX and Alameda are both large market players, and they need to constantly rebalance their portfolios to ensure that they are exposed to the right mix of assets. This may involve moving assets from one exchange to another, or from one asset class to another.

•Taking advantage of arbitrage opportunities. Arbitrage is the practice of buying an asset on one market and selling it on another market for a profit. FTX and Alameda may be moving assets around in order to take advantage of arbitrage opportunities.

•Preparing for a market downturn. Some analysts believe that FTX and Alameda may be preparing for a market downturn. By moving assets to different exchanges, they may be trying to reduce their risk and exposure to any one exchange.

•Complying with the court order. FTX and Alameda may be moving assets around in order to comply with the court order to sell no more than $50 million for the first week, with the limit increasing to $100 million in subsequent weeks. This may involve moving assets to exchanges that are more willing to sell their assets, or that are offering better prices.

What does this mean for investors?

The fact that FTX and Alameda are moving so much money around is a sign that they are taking the market seriously. They are clearly looking for ways to optimize their portfolios and reduce their risk. This is good news for investors, as it shows that these exchanges are committed to their long-term success.

However, investors should also be aware that large asset transfers can sometimes be a sign of trouble. For example, if an exchange is facing financial difficulties, it may start moving assets to other exchanges in order to protect them from creditors. Therefore, it is important to monitor the situation closely and to be prepared to take action if necessary.

Conclusion

The recent asset transfers by FTX and Alameda are a reminder that the cryptocurrency market is still evolving and that there are still risks involved. However, the fact that these exchanges are taking the market seriously and are looking for ways to optimize their portfolios is a good sign for investors. Investors should continue to monitor the situation closely and be prepared to take action if necessary.