Buy/Sell/HODL Alert
Has anybody checked on USDT lately?
Is this the November drop to make the four-year cycle people happy?
If you haven’t heard the news, here are brief summaries from CNN and Coindesk.
TL;DR—Binance launched a hostile takeover of the distressed crypto exchange, FTX. We won’t know whether the deal goes through for a while yet and nobody knows what sort of contagion might spread to the rest of the crypto space.
Scroll down for my alert. First, a quick preface about FTX’s situation.
Regarding FTX (the exchange)
If FTX.us followed US laws, it will have all user funds available for withdrawal on-demand. I don’t know about FTX, its sister exchange, or what contagion might spread from a potential failure of Alameda, a trading firm closely associated with FTX. Rumors are swirling that Alameda is about to collapse.
Bottom line: FTX.us should be fine. FTX depends on what Binance does next. Alameda is a black box and nobody knows what will happen to it.
Regarding FTT (FTX’s exchange token)
FTX (or Binance?) can do whatever it wants with FTT.
Some people think FTT will go to zero, but Binance could offer to redeem FTT tokens for, say, $15. Or let the tokens die. Or do something else with the token.
That’s the deal with exchange tokens. The exchanges can do whatever they want with it, whenever they want, for whatever reasons they want, without restraint.
Bottom line: FTT is worthless until we know what Binance intends to do with it.
Regarding SOL (the Solana token)
Alameda holds $1 billion SOL (and $3-5 billion FTT plus other tokens).
Nobody knows whether Alameda is solvent, but the rumor is they’re insolvent and will sell their SOL if they haven’t yet (the FTT is still worthless until we know what Binance intends to do with it).
Bottom line: as of the timestamp you see on this update, there is no way to substantiate any rumors related to SOL.
Scroll down for my alert.
***Disclaimer: I do not have an account with FTX, I own no FTT, and I hold a small, non-investment amount of SOL for/from publishing on SolType.***
If I knew of a good source for info or news, I’d tell you. For now, I’ve retweeted some useful threads on my Twitter account, for those who follow me.
Do you have any sources to suggest? Please leave a comment below.
Paid subscribers, expect a market update tomorrow. Here’s the alert.