Alameda CEO Justifies Company’s Financial Situation –

Alameda had assets of $14.6 billion as of June 30, according to classified documents obtained. But most of it is from his FTX. FTT token.

Given Alameda’s messy balance sheet, does FTX pose a systemic risk?

FTX, a cryptocurrency exchange owned by billionaire Sam Bankman-Fried, and his trading firm, Alameda Research, are the two main components of his crypto empire. Both companies are market leaders in their respective fields.

However, despite being two different companies, the separation is evident in key places. Alameda’s balance sheet.

Its balance sheet is mostly loaded with the exchange’s FTX FTT token, Its owners will receive a reduction in trading fees on the exchange’s market.

There’s nothing inherently inappropriate or undesirable about such a thing, but if Bankman trading powerhouse Fried Alameda It is primarily built on coins created by sister companies rather than stand-alone assets like fiat currencies and other cryptocurrencies. This situation proves the strong relationship between FTX and Alameda.

Finance confirms what industry observers already know

Alameda’s assets were $14.6 billion as of June 30. A total of $3.66 billion in ‘unlocked FTT’ is the most significant asset. What’s the third largest entry under the ‘Assets’ heading in the ledger?

addition FTX token A total of $292 million of “frozen FTT” is included in the $8 billion liability. (Loans totaling $7.4 billion account for most of the debt.)

Alameda CEO Caroline Ellison chose not to make a statement. A request for comment from FTX was not answered.

The balance sheet also has other significant assets such as $3.37 billion of “Crypto Holdings” and the native tokens of the Solana blockchain, “Unlocked SOL”, “Locked SOL” and “SOL Collateral”. I have.

One of Solana’s first backers was Bankman-Fried. Other coins specifically referenced are FIDA, MAPS, OXY, and SRM (a coin from Serum, a decentralized exchange co-founded by Bankman-Fried). There is also $2 billion in “investments in stocks,” which also includes $134 million in cash and equivalents.

Additionally, token values ​​can be low. Alameda writes in a footnote: to FTX/USD purchase order. ”

SOL, the native token of the Solana blockchain, and its equivalents ($292 million in “unlocked SOL”, $863 million in “locked SOL”, $41 million in “SOL collateral”) ) is one of the other notable assets shown on the balance sheet. .

Total $3.37 billion. Solana’s early investors included Bankman-Fried. SRM (a token of the Serum decentralized exchange co-founded by Bankman-Fried), MAPS, OXY, and FIDA are other tokens specifically referenced.

In addition, there is $2 billion in Equity Investments and $134 million in cash and equivalents.

A risky balance sheet structure Alameda If the market drops more than 50%, you go bankrupt. (1) Alameda has significant problems due to its high leverage and precarious balance sheet structure. (2) FTX and Alameda’s funding sources and spending are highly questionable. (3) Defi/Cefi collateralized by SOL/FTT is subject to collateral risk due to concentration of SOL/FTT.

CEO of Alameda’s Reply

Alameda Research CEO Caroline Ellison addressed rumors on Twitter By claiming the company has more than $10 billion in assets “not reflected” on the leaked balance sheet. Alameda had hidden hedges and had previously paid off most of its outstanding loans, Ellison said.

Binance’s sale of FTT holdings should not be viewed as an insult to competing exchanges, CZ continued. CZ tweeted:

“We often hold tokens for a long time. And we have held this token for a long time. We remain open to our customers.”

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