- Around 40% of Alameda’s value is made up of FTT tokens.
- It’s possible that SBF and Alameda received free FTT tokens from FTX and used them as loan collateral.
- FTX and Alameda have exceptionally tight relations.
Alameda reportedly has $14.6 billion worth of assets, according to a Reddit post. Currently, “unlocked FTT” at $3.66 billion is the single largest asset, while “FTT collateral” worth $2.16 billion is the third-largest.
This indicates that around 40% of Alameda’s value is made up of FTT tokens. The FTT token has a management and control issue since FTX controls it centrally. This implies that they have the freedom to create it out of thin air whenever they like.
Sam Bankman-Fried (SBF), who owns both businesses, may also readily sell or borrow money at incredibly low rates. In the absence of a direct gift, Alameda’s asset value would most certainly be inflated for next to nothing by an indirect loan from FTX to Alameda that is never returned.
In other words, SBF and Alameda may really get FTT tokens for nothing from FTX and then use them as collateral for loans. By doing this, the innumerable FTT tokens they manufacture for no charge are never sold and have no effect on the price.
Each of these tokens still has a market value. SBF and Alameda can borrow against them as a result, effectively receiving free money.
According to a rough calculation of the token quantities owned by Alameda as of the day the balance sheet information is dated, Alameda alone is believed to have around 75% of the overall supply. This is reportedly based on FTX’s own FTT token data.
All of this information points to the fact that Bankman Fried’s trading giant Alameda is built primarily on the back of a coin that a sister business created. The circumstance thus strengthens the case that FTX and Alameda have exceptionally tight relations.
