As Asia begins its week, FTT-Alameda Drama weighs on the market.

Key points: 

• The balance sheets of FTT exchanges are also growing, according to data provided by Glassnode.
• Nansen's data shows that FTX is suffering from a sharp increase in foreign exchange outflows. Since Alameda is a large market maker for FTX, traders may withdraw from the exchange due to concerns about liquidity.
• Meanwhile, Solana, a token backed by Alameda and FTX, fell 11% on the day. 

As the digital asset industry continues to grapple with a balance sheet controversy at trading firm Alameda Research, traders in Asia have woken up to a market that is partly in the red.

The FTX exchange's FTT token, which makes up a large portion of Alameda’s assets, fell 5% on the day as Binance CEO Changpeng Zhao held public discussions with Alameda CEO Caroline Ellison about selling Binance’s FTT holdings.

The balance sheets of FTT exchanges are also growing, according to data provided by Glassnode. Typically, a high exchange balance means there is ample liquidity to buy and sell tokens. This usually causes the price to drop when traders try to sell the coin.

Nansen's data shows that FTX is suffering from a sharp increase in foreign exchange outflows. About $292 million in stablecoins left FTX last week. Since Alameda is a large market maker for FTX, traders may withdraw from the exchange due to concerns about liquidity.

Nansen 

Meanwhile, Solana, a token backed by Alameda and FTX, fell 11% on the day. According to a copy of Alameda’s balance sheet, Alameda holds $292 million in unlocked SOL, $863 million in locked SOL, and $41 million in “SOL collateral.”

Also affected by the market turmoil was Binance’s BNB token, down 4%.

With market leaders, BTC and ETH holding steady, fears of a full-blown liquidity crisis may be overdone. Bitcoin’s implied volatility, or options traders’ expectations for price swings over a period of time, continued to trade sideways, showing slight signs of panic.