On Sunday, November 6, Binance chief Changpeng Zhao announced that the trade could be dumping all FTX tokens (FTT). Binance took an exit from FTX fairness final yr on account of which it acquired $2.1 billion in money.
Quickly after CZ made the announcement, the FTX token value got here beneath extreme stress. As of press time, FTT is buying and selling 6% down at a value of $22. The native cryptocurrency of the FTX trade has misplaced 20% during the last week. In a pointy message on Twitter, CZ said:
“Liquidating our FTT is simply post-exit danger administration, studying from LUNA. We gave help earlier than, however we received’t fake to make love after divorce. We aren’t towards anybody. However we received’t help individuals who foyer towards different business gamers behind their backs. Onwards”.
Following the withdrawals from Binance, different gamers have additionally joined in. As per data from PeckShiled,
Bounce Buying and selling has withdrawn about 40.4 million USDC from FTX up to now 24 hours. About $109.8 million value of cryptocurrency has been transferred from FTX to crypto lending platform Nexo, together with 56,432 ETH and about $13.9 million in stablecoins.
FTX Chief Addresses the Rumors
There have been controversial reviews floating with FTX trade and its sister concern Alameda Analysis. The controversy notes: “Each these corporations have totally different companies however the steadiness sheet of Alameda analysis exhibits important quantity of unlocked FTT token value practically $3.66 Billion out of whole $14.6 billion”.
The controversy is surrounding the illiquid tokens which Alameda Analysis has been displaying on its steadiness sheet. Therefore these main liquidations available in the market. Observe that each these corporations are owned by Sam Bankman-Fried.
In his newest Twitter thread, SBF has come clear addressing the rumors available in the market. He stated that FTX and its group of corporations are extremely regulated and that they hold all audited financials. Nevertheless, he stated that FTX customers needn’t panic as all of the withdrawals are working positive.
We’ve already processed billions of {dollars} of deposits/withdrawals right this moment; we’ll hold going. (Taking on anti-spam checks to course of extra–sorry if you happen to bought these. We’re hitting node charge capability, will hold going.) Additionally tons of USD <> stablecoin conversions happening.
He additionally thanked all their supporters who continued to stick with the trade.
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