FTX clients may not recover a large portion of their deposits
FTX clients are unlikely to recover much of their deposits, as the crypto exchange has $9 billion in liabilities, but only $900 million in liquid assets. Additionally, FTX has $9 billion in illiquid assets which mostly consist of tokens such as (FTT) and (SOL), which have been falling in price over the past week.
At press time, the price of FTT is trading at $1.53 after a price decline of 21.02% in the past 24 hours, according to CoinMarketCap. After setting a 24-hour high at $2.17, the price of FTT fell to a low of $1.29 before recovering to its current level.
Daily chart for FTT/USDT (Source: CoinMarketCap)
The daily chart for FTT/USDT shows the tragic fall of FTT and the wider FTX ecosystem over the past week. This led the price of FTT to drop from $25.85 to $5.50 between November 5 and 8, 2022. Subsequently, the price fell further in the days that followed.
In SOL terms, it is currently trading at $12.58 after its price fell 13.12% in the last 24 hours.
Daily chart for SOL/USDT (Source: CoinMarketCap)
FTT’s price movement over the past week can also be seen on SOL’s daily chart, as its price has also dropped dramatically over the same period. This decline caused the price of SOL to drop from $37.06 to $14.08.
Subsequently, the price of SOL rallied slightly to hit a high of $18.87 before closing at $17.66. The days that followed all closed in the red, as can be seen on the chart.
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