FTX token is in big trouble and there’s no other way to put it. Recently, rumors have been going around about FTX Exchange about to go bust. Obviously, the exchange has denied everything and blames other competitors. Now, this is the kind of denial we’ve seen before and these are the type of rumors we know all about. In fact, the whole FTX token situation is starting to resemble the collapse of the Terra ecosystem including LUNA and Terra USD. With that, Binance is going all out against Sam Bankman-Fried and looks like we’re about to witness a twitter war. Changpeng Zhao, the CEO of Twitter has been throwing fists at FTX and seems contempt to bring down his curly-haired nemesis. Tell us down in the comments whose side are you at!
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FTX Token Down!
Following the rumors of a possible insolvency for FTX Exchange, Binance is selling off all FTT Tokens. Yes, and this is all happening in this economy! The situation does not seem good and Binance has officially escalated the rumors to a full on FUD.
CZ has taken to Twitter (free bird) to open up about their stance on FTT Token. According to the statement, Binance decided to sell its equity in FTX token to receive billions in stablecoins and FTT.
And now, they are getting rid of all these assets due to “revelations” coming to light. Mind you, Binance is the largest crypto exchange by volume in the world.
“As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.”
At the time of writing this article, FTX token is down 34% in the past 7 days trading at $17. Currently, FTT is 29th in the ranks with a market cap of $2.26 billion.
And for the final nail in the coffin, CZ compared FTT to Luna which is indeed a bold comparison.
Bad Actors
For long, FTX has been one of the biggest donors to Washington politicians. While the details remain unknown, CZ indicated that FTX has been lobbying against other players in the industry.
“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.”
To address concerns about a possible market crash, Binance says that they will not sell FTT in a single market order sell. Instead, they will do it in a way that minimizes volatility.
“We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete.
Binance always encourages collaboration between industry players. Regarding any speculation as to whether this is a move against a competitor, it is not. Our industry is in its nascency and every time a project publicly fails it hurts every user and every platform.”
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