Binance Sells its FTT Holdings Citing “Recent Revelations” November 7, 2022 November 7, 2022 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsNovember 7, 2022 by Kelly Cromley

Binance Sells its FTT Holdings Citing “Recent Revelations”

The leftover FTT holdings of Binance are being liquidated, as per the exchange’s CEO Changpeng “CZ.” Nevertheless, CZ has not elaborated on the rationale for dumping FTT – the native crypto token of competitor FTX exchange, beyond citing “new disclosures.”

“As portion of its departure from FTX equity in 2021, Binance got around $2.1 billion in cash” (BUSD and FTT). As a result of latest discoveries, we have chosen to dilute rest of the FTT held by our firm. 1/4”

CZ also used Twitter to declare publicly that the dumping of FTT tokens is not a smear campaign against FTX. In reaction to CZ’s most recent action, Alameda’s CEO stated that her company’s financial status had improved. In her reply to the Binance CEO’s message, she also extended a repurchase offer.

“@cz binance, if you’re wanting to reduce the market effect of your FTT sales, Alameda will gladly purchase everything from you immediately for $22!”

The action by Binance follows days of anger directed at Sam Bankman-Fried, creator and CEO of FTX, for his regulation suggestions. On October 19, Bankman-Fried released a plan that has since become contentious. It is a comprehensive plan for legislative monitoring and industry practices in the realm of digital assets.

As per detractors, Bankman-plan Fried’s to establish industry standards poses a danger to the underlying idea of DeFi and to the top DeFi teams and platforms in the market. Nevertheless, Bankman-Fried has retreated in order to reevaluate his position on DeFi regulation. The monies retained by Binance were obtained from FTX in 2018 as part of FTX’s withdrawal from a 2019-held ownership interest in the firm.

CZ reports that FTX purchased Binance’s interest in the firm for $21 billion worth of FTT and BUSD, the native stablecoin of Binance’s crypto exchange. Due to persistent poor market emotions and low liquidity, he noted that the sell off might take many months. In addition, the business intends to operate liquidity in a way that minimizes market effect.

As per CoinGecko, FTT has decreased by 9.5% during the last day, falling from $25.55 to $23.03. Saturday, 22,999,999 FTT, worth $584 million at that time, were moved from a wallet to the Binance crypto exchange, according to statistics from Etherscan. According to CoinGecko, the sum represents 17% of the total supply of FTT.
CZ has acknowledged that the monies in question were transferred as portion of Binance’s efforts to dilute its investment in FTT.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.