Kryptobørs FTX’s token is leading major coins to slide while investors’ nervousness rattles the market

LONDON/SINGAPORE, Nov 8 (Reuters) – Major crypto exchange FTX’s internal ticker fell on Tuesday, losing a third of its value and dragging down other major digital assets, as investors appeared spooked as they talked about pressure on FTX’s finances.

The FTX token ̵[ads1]1; which gives holders discounts on FTX trading fees – was last down more than 33% to $14.68, its lowest since early 2021. The token, known as FTT, is the 30th largest digital coin, with a value of $2 billion, according to CoinMarketCap.

Bitcoin , the largest digital token, fell 6.42% to $19,342.00, its lowest in two weeks, and was on track for its worst day since mid-September. Ether , the second largest, was last over 9% lower on the day.

FTX has come under pressure after Changpeng Zhao, head of rival exchange Binance – the world’s largest – said on Sunday that his firm would liquidate its holdings of the FTX token due to unspecified “recent revelations”.

FTX founder Sam Bankman-Fried said the exchange was “fine” and that the concerns were “false rumours”. FTX had no immediate comment when contacted by Reuters on Tuesday.

Figures from research firm Nansen showed a one-day net outflow from FTX of around $630 million, suggesting that account holders also got their money out.

“On-chain analytics show that hundreds of millions have been withdrawn from FTX over the past day,” said Matthew Dibb, CEO of Singapore-based crypto investment manager Stack Funds.

“The question of the soundness of FTX has been raised given recent events this year … but we currently see no hard data to confirm this kind of view.”

Crypto users raised questions on Twitter last week about FTX’s token following a report by news website CoinDesk about a leaked balance sheet from Alameda Research, a trading firm founded by Bankman-Fried that has close ties to FTX.

Alameda CEO Caroline Ellison said in a tweet Sunday that the “balance sheet information” showed only a subset of Alameda’s corporate entities. Alameda has over $10 billion in assets not reflected in the CoinDesk report, she said.

Reuters was unable to independently confirm the accuracy of the report, or the origin of the leaked balance sheet.

Reporting by Tom Westbrook and Tom Wilson in London and Hannah Lang in Washington; Editing by Louise Heavens, Ed Osmond and Catherine Evans

Our standards: Thomson Reuters Trust Principles.

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