CoinEfficiency

The Downfall of FTX: A Timeline of Events

Explore the key events leading to the collapse of FTX, from balance sheet revelations to market repercussions.
Published on 2022-11-10

The Crisis Unfolds

The FTX saga began on November 2, when a leaked balance sheet revealed that Alameda Research, founded by Sam Bankman-Fried (SBF), held significant amounts of FTX Token (FTT), the native token of the FTX cryptocurrency exchange. This discovery raised concerns about the financial stability of both companies.

Key Developments in the Crisis

  • November 5: Blockchain trackers detected large movements of FTT tokens to Binance, signaling potential liquidation.
  • November 6: Alameda's CEO addressed the balance sheet concerns, while Binance announced plans to liquidate its FTT holdings due to "recent revelations." Alameda later offered to buy Binance's FTT holdings, but the deal was rejected.
  • November 7: FTX experienced a "bank-run" as users rushed to withdraw funds, leading to sluggish withdrawal processing. SBF assured stakeholders that "assets are fine" but later deleted the tweet.

The Final Collapse

  • November 8: The price of FTT and broader crypto markets began to decline sharply. FTX faced a liquidity crunch and entered into an agreement to sell the exchange to Binance.
  • November 8-9: FTX's website went dark, and the company stopped processing withdrawals.
  • November 9: Binance officially backed out of the acquisition deal, and the crypto market plummeted into red. SBF reportedly informed investors that FTX required $8 billion in emergency funding to stay afloat.

This series of events marked one of the most significant crises in the cryptocurrency industry, highlighting the interconnected risks within the sector.

What is Coinefficiency?

Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.

Why Use Coinefficiency?

  • Advanced market analytics to identify trading opportunities.
  • Compare markets relative performance.
  • Understand market cycles over time. See market levels.
  • Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.

With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.

Get Started with Coinefficiency

Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.