- Binance CEO CZ decided to sell off all FTX’s FTT tokens.
- Binance holds around 23 million FTX tokens.
Binance CEO Changpeng Zhao also known as CZ announced his decision to sell all FTT tokens. FTT is a native currency of the most prominent crypto exchange FTX. Binance is world’s largest cryptocurrency exchange by daily trading volume and it holds around 23 million FTX tokens, valued at about $517 million at the current price.
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. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
The rival company CEO CZ did not disclose how much FTT his company would sell. Although, Binance obtained approximately $2.1 billion equivalent in cash (BUSD and FTT) as part of its separation from FTX equity last year.
However, following the CZ tweet about the FFT liquidation, Caroline Ellison, the CEO of Alameda Research, tweeted that the trading company’s financial situation is better than what the balance sheet revealed by the site. Also, she offered to acquire his company’s FTT token holdings for $22 per.
FTX Reminds Celsius?
On November 2, the news site CoinDesk stated that a significant portion of the balance sheet of Alameda Research a crypto trading company owned by Sam Bankman-Fried is comprised of FTT tokens. According to the report from the site, FTX has $14.6 billion in total assets. In that $5.8 billion in FTT tokens, $1.2 billion in Solana tokens (SOL), and $3.37 billion in unidentified “crypto assets. This includes $2 billion in investments in equities securities.
It recalls the defunct Celsius Network which was partially wiped out by its token CEL. The crypto lending platform Celsius was built around its native token CEL and FTX reflects the same pattern. Further, speculation on the FTX token resulted in extreme price volatility. At the time of writing, FTX (FTT) traded at $22.24, decreased by over 4% in the last 24 hours and around 13% in a week, as per Coingecko.
