As per his tweet, Binance CEO has confirmed a switch of almost $584 Million price of FTT token to Binance as a part of introduced liquidation course of. As reported by CoinGape, CZ announced right now that Binance will liquidate their FTT token holding in subsequent few months.
What’s the CZ Vs SBF Controversy?
As per stories, Alameda analysis a buying and selling firm owned by Sam Bankman Fried (SBF) was discovered to be holding greater than $3 Billion price of FTX change unlocked (FTT) token on their steadiness sheet. FTX change is the issuer of FTT token and can also be owned by SBF.
This merely means, that Alameda Analysis has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX token. Alameda Analysis has allegedly used the FTT on their books as collateral to borrow USD stables.
It’s exhausting to pin level actual purpose for Binance motion in opposition to SBF and FTT token. One purpose could also be that Binance considers holding FTT token on their books as legal responsibility. This liquidation of FTT token holding could also be an effort to cut back the publicity and derisk.
Many crypto fanatics are additionally arguing that what’s stopping Binance from promoting their FTT holding on to Sam Bankman-Fried and FTX as a substitute of dumping in open market.
How Low Can FTT Value Slide?
The incident is certainly impacting FTT token worth and it has already slumped by greater than 10% in final 24 hrs. $21-$22 is a robust help area. A breakdown of $21 help might lead to a really sharp decline in worth printing all time lows for the token worth.
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