This is the drama of the weekend in the crypto sector, Changpeng Zhao says “CZ”, The CEO of Binance (BNB), said on Twitter that he wants to liquidate all FTT tokens held by the crypto exchange after revelations about its competitor FTX.
In a tweet, CZ Binance confirmed that it was more than 500 million dollars in FTT tokens !
Yes, this is part of it. https://t.co/TnMSqRTutr
— CZ 🔶 Binance (@cz_binance) November 6, 2022
The revelations mentioned by the CEO of Binance come from the American media Coindesk which reported in an article that the investment company Alamedawhich is owned by FTX, reportedly holds $14.6 billion in assets of which a large portion ($5.8 billion) is in FTT tokens issued by the FTX crypto exchange.
A weak financial situation in front of the CEO of Binance prefers to share FTT tokens owned by the crypto exchange, after its recent separation from FTX.
As part of Binance’s exit from FTX shares last year, Binance received approximately US$2.1 billion in cash equivalents (BUSD and FTT).
Due to recent revelations that have come to light, we have decided to eliminate any remaining FTT from our books. We will try to do this in a way that minimizes the impact on the market. Due to market conditions and limited liquidity, we expect this to take several months. Binance has always encouraged collaboration between industry players.
As for any speculation as to whether this is a move against a competitor, no. Our industry is in its infancy and every time a project fails publicly, it hurts every user and every platform. We usually hold tokens for a long term. And we kept this sign for a long time. We remain transparent in our actions.
As part of Binance’s exit from FTX equity last year, Binance received almost $2.1 billion USD in cash equivalents (BUSD and FTT). Due to the recent revelations that have come to light, we have decided to eliminate any remaining FTT from our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
CZ Binance determined that this sale of FTT tokens will be done over time so as not to negatively affect the market that is suffering amid the conflict between the two billionaire CEOs of the crypto sector.
After these strange statements from the CEO of Binance, Sam Bankman-Friedthe CEO of FTX, thanked those who supported him, while criticizing the ” a bunch of baseless rumours“.
A big thank you to everyone who supported us – we look forward to continuing to climb together. And especially for those who keep a cool head during the crazy season. We appreciate it very much.
Many baseless rumors were spread. You will see https://twitter.com/carolinecapital/status/1589264375042707458.
FTX maintains audited financial statements, etc. And, although it sometimes slows us down with products, we are highly regulated. We have processed billions of dollars in deposits/withdrawals today; we will continue. (Remove spam checks for further processing – sorry if you have. We’ve reached node rate capacity, we’ll continue.)
Tons of USD <> stablecoin conversions are also happening. And finally, you should do whatever you want and sell wherever you want. We are grateful to those who stayed; and when it’s over, we’ll accept everything. And everyone else too, as long as they continue to build and push the industry forward. We will also continue to build.
1) A big thank you to everyone who has supported us–we look forward to continuing to climb together.
And especially those who keep a level head during this crazy time. We appreciate it very much.
— SBF (@SBF_FTX) November 6, 2022
the CEO of Alameda Research, Caroline Ellisonalso said on Twitter that the information reported by the crypto news outlet Coindesk is incomplete because there is believed to be more than $10 billion in “undisclosed” assets in the disclosed balance.
A few notes on balance information that has been circulating recently:
– that specific balance sheet for a subset of our corporate entities, we have >$10b of assets that don’t appear there
— Caroline (@carolinecapital) November 6, 2022
Despite these declarations, FTX and Alameda have so far not detailed what these tens of billions of assets might be to calm the rumors currently circulating about the weak economic condition of the FTX empire.
In summary, FTX is said to issue FTT tokens in bulk to fund business development and purchases.
An FTT token that is currently worth $23 but could wipe out billions of dollars in capitalization if the FTT price drops below 0…
A hypothesis reminiscent of the Terra (LUNA) event where tens of billions of dollars of capital went up in smoke.
A conflict between two giants of crypto trading worried the markets, the The price of Bitcoin (BTC) is currently falling about $20,700 on Binance.
All eyes are now on the price of FTT with some fearing to be the victim of a major sell-off for fear of a price crash in the future if things go wrong for FTX.
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