Nansen, which was established in 2019 and is one of the top blockchain analytics companies in the industry, has made public its opinion of an interwoven link between the Terra crash and FTX’s demise and stated that FTX’s collapse is most likely due to Terra’s fall.
FTX’s Demise Likely Caused By Terra’s Fall
The failure of the connected companies, which occurred a little over a week ago, is still having significant effects on the cryptocurrency industry. Many stakeholders in the crypto space have made their opinions public.
In a blogpost made on the 17th of November, 2022, Nansen, one of the top blockchain analysts in the crypto industry, suggested an interwoven link between FTX’s demise and Terra’s fall.
According to Nansen, a distinct division between both firms, FTX and Alameda Research was never a thing, and FTX’s mission to keep Alameda’s operations going began to fall apart around the time Terra USD collapsed.
According to its research, Nansen claimed that Terra/Luna’s crash exposed a serious fault in the tumultuous relationship that held FTX and Alameda.
Also read:Alameda’s Assets Are Not Tradeable
The attention of the public has also been drawn to the fact that Alameda’s assets are untraceable. Recall that, prior to the FTX’s inauguration in May 2019, wallets associated with Alameda Research were connected with wallets overseen by the FTX.
Some weeks ago, it was revealed that around $5 billion of Alameda’s assets were FTX Tokens, rendering a sizable part of its holdings absolutely untradeable.
When they learned the news, lots of FTT owners immediately cashed out their tokens and removed money from the FTX market. FTX has submitted a Chapter 11 filing following the failure of an acquisition deal with Binance.
From Nansen’s report, it appears that there has been an intentional misrepresentation that has caused the public to be mistaken. The study showed that FTX actually possessed over 80% of the 350 million supply, contrary to statements made in business papers that it only owns half of that amount. This would naturally explain the turn of events.
A careful perusal of the report suggests that there may be an insider involvement in both crashes after all.
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