The collapsed crypto exchange has been steadily transferring out hefty volumes of LUNC from its hot wallet in the last week. At the time of writing, FTX’s balance sheet holds only 66.9 billion LUNC.
While the purpose of these LUNC transfers by FTX remains unknown, concerns are that the bankrupt crypto company is likely to dump these assets to settle part of its debts to customers and other firms including Ripple.
Precisely, data extracted from the Terra Classic blockchain explorer dubbed Terra Finder, showed that the FTX Hot Wallet address moved approximately 82.5 billion LUNC in the past week via eight transactions.
On March 7, roughly 32.5 billion LUNC tokens were moved out of the wallet in question across five transactions of unequal volumes.
The first transaction on this day saw 1,234,567 LUNC moved to an unknown destination and was closely followed by a transfer of 3 billion LUNC and 14.5 billion LUNC. Subsequently, the FTX Hot Wallet sent out 150,000 LUNC and 15 billion LUNC.
The Terra Classic explorer further showed that the bankrupt crypto exchange shifted 20 billion LUNC tokens on March 10. While it moved out 30 billion LUNC on March 14.
MrStark, a certain crypto investor, also confirmed the 30 billion LUNC transfer, calling Sam Bankman Fried a thief. Recall that CZ Binance previously called the embattled FTX founder the biggest fraud in history.
Notably, analysis of these token movements shows that all these 82.5 billion Terra Classic (LUNC) were later channeled to crypto exchanges, indicating a possible selling spree. Should this happen, then LUNC price could plummet massively considering the huge volume of tokens in question.
But with positive developments including the upcoming launch of Terraport, a Terra Classic layer-2 DeFi project designed to support LUNC burning, LUNC is up 2.44% in the last 24 hours and 4.3% in the past 7 days.
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