Alameda Research emptying coffers, crypto Twitter mulls altcoin bloodbath
- Alameda Research, Samuel Bankman-Fried’s trading firm, has been swapping altcoins for Ethereum and USD Tether.
- Wrapped XRP, Render, Guild of Guardians, Lido DAO and XSUSHI prices could suffer double-digit decline if the trading firm sheds its holdings.
- On-chain analysts and traders on crypto Twitter consider these moves alarming for altcoin holders in the ecosystem.
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Alameda Research has started swapping altcoin holdings for Ethereum and USD Tether. On-chain analysts argue that if Alameda Research started shedding its altcoin holdings it could trigger a bloodbath in cryptocurrencies like WXRP, GOG, LDO and XSUSHI.
Alameda Research converts altcoins to Ethereum, USD Tether, what to expect
Alameda Research, a trading firm co-founded by Samuel Bankman-Fried is currently in the process of converting altcoins to Ethereum and USD Tether based on on-chain analysis. In the past 13 hours, the firm has moved several altcoins through known addresses, swapping them for Ethereum.
Analysts have evaluated the price impact if SBF’s trading company started selling its holdings. According to Ri_gmi, an on-chain analyst, the potential price impact could be catastrophic, with Wrapped XRP (WXRP) and Render (RNDR) facing up to 99.47% downside.
Altcoin price impact when Alameda Research sheds holdings
The expert looked at Alameda’s on-chain holdings using crypto intelligence tracker ArkhamIntel. In the last few transactions the trading firm has converted altcoins, claimed rewards, unstaked assets and turned them into Ethereum and USD Tether. Majority of the assets were swapped through Metamask’s inhouse swap feature.
Asset swap through Metamask
According to on-chain analysis, Alameda’s wallet addresses are sending their ETH and USDT to fresh addresses before sometimes sending to instant exchangers such as FixedFloat and changeNOW. The bankruptcy team is yet to confirm whether the multisig addresses where most of the tokens were deposited belong to them or a third party.
Anything that's not tied down in the boarder Alameda Cluster, is getting swept to this multisig address (possibly controlled by the bankruptcy team?).https://t.co/qhoW1oExbT pic.twitter.com/CTjSfxwbw9
— ∴Ergo∴ (@ErgoBTC) December 28, 2022
ErgoBTC, a crypto Twitter based on-chain analyst argues that if the multisig address is truly controlled by the bankruptcy team, it can be inferred that Alameda addresses not sweeping to the multisig are either false positive labels, or true positives controlled by someone else besides the bankruptcy team.
Analysts are closely watching Alameda’s wallet addresses for the next move and to ascertain whether the firm is ready to shed its portfolio holdings.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
