Bitcoin withdrawals and stablecoins redemptions are currently giving Crypto exchange FTX some trouble. Consequently, FTT tokens have decreased 5%.
Sam Bankman-Fried, the founder of Crypto exchange FTX, clarified rumors about illiquidity to users earlier and ensured them that deposits and withdrawals are working just fine. As some of their users faced difficulty removing their Bitcoin holdings from the crypto exchange, FTX revealed that it was due to a limited number of throughputs on nodes but the matching engine is still up and running smoothly. Moreover, they stated that Bitcoin (BTC) withdrawals will continue facing difficulties until banks open but stablecoins redemptions shouldn’t be affected by this issue.
In a series of tweets on November 7, crypto exchange FTX revealed that all processes, including the matching engine, are working smoothly. However, Bitcoin withdrawals on FTX are facing difficulties as node is throughput limited. The crypto exchange is switching to process Bitcoin withdrawals from both ends to help speed up the process.
“BTC withdrawals: churning through them; node is throughput limited. We’re switching it to process from both ends, which should help speed it up.”
FTX crypto-users are struck with anxiety as their transactions have been stuck for several hours now. As the FUD (fear, uncertainty, and doubt) concerning FTX and Alameda’s future plans continues to grow amongst investors, many people are beginning to draw comparisons between this event and an earlier liquidity crisis.
In addition, the crypto exchange has also alerted users that they may experience difficulty redeeming stablecoins. The message stated that creations and redemptions ofstablecoins might be slower until banks open and can process wire transfers. FTX holds reserves in banks and coverts to stablecoins when necessary.
The crypto market is feeling the effects of FTT’s liquidations and stopped withdrawals. Currently, the price of FTX Token (FTT) is $22.50- down five percent in the past day.
On November 6, Binance CEO “CZ” announced that the company would be selling all of its FTX Token (FTT) holdings over the next few months. In fact, Binance exited FTX equity last year and received $2.1 billion in FTT and BUSD. The firm has already transferred $584 million worth of tokens, causing the FTT price to fall by over 10%.
Several tweets about Alameda have surfaced recently. According to data, Alameda transferred 26,600 ETH and Blockfolio transferred 13,555 ETH to FTX as the crypto exchange’s ETH holdings declined sharply.