The biggest cryptocurrency The price of FTT, the native altcoin of one of its exchanges, FTX, seems to be resisting after a rough weekend.
The FTT token had fluctuated after Binance CEO Changpeng Zhao announced that he would sell the $2.1 billion token position he acquired from the sale of FTX shares last year.
According to CoinDesk’s report, CZ’s tweet increased the current pressure on the altcoin, which forms a significant part of the balance sheet of FTX’s sister trading firm Alameda Research.
While Caroline Ellison, CEO of Alameda, said that the leaked information represents only a fraction of the firm’s entire balance sheet, CZ’s announcement caused a volatile trend for FTT, with $300 million in trading volumes on FTX and Binance. These levels had not been seen for a year.
It is unclear whether Binance has started to reduce its position in FTT.
“FTT Token Proves Resistant”
Data provider Kaiko said at a briefing that the altcoin has proven to be relatively resilient, showing that “market makers are working overtime to protect the price.”
“Despite the large increase in selling pressure, there is almost no reduction in market depth and only a slight increase in price slippage.”
Kaiko said in a statement that a market sell order of $50,000 for the FTT token would cause a slippage of 0.17% on the FTX exchange and 0.5% on the Binance exchange in the most liquid trading pairs, which means a slight increase compared to before the Alameda data.
Kaiko continued her statements as follows:
“Ultimately, it may be in the interest of all parties to take an over-the-counter trade as suggested by Caroline Ellison to limit price effects, especially given that Binance, FTX and Alameda are at risk of huge losses if FTT prices drop significantly.”
However, Binance CEO opposed the idea of over-the-counter sales and said that this would only happen if Alameda had $580 million in BNB or they bought that amount of BNB.
*Not investment advice.