The cryptocurrency market witnessed one of the unforgettable crashes today. The chain of events around FTX and Binance led to the collapse of the FTX Token (FTT). However, the collapse of the altcoin project spread throughout the market and the market went into a bloodbath. In this environment, the Australian crypto fund announced that it will sell FTX (FTT) tokens.
DigitalX sells FTT, altcoin price crashes!
DigitalX, an Australian cryptocurrency fund, has decided to liquidate its FTX (FTT) token holdings in light of recent FTX/Binance events, according to Australian Financial Review reports. Listed on the Australian Securities Exchange under the DCC exchange, the fund has sold approximately $1 million worth of FTTs. Liquidated tokens account for roughly 2% of the fund’s total assets. The fund expects a ‘pretty strong’ short-term rebound, said Lisa Wade, head of DigitalX. Therefore, she noted that they do not want to move positions in the token. However, after Binance’s move to buy FTX, it is not yet clear whether it will continue to sell.
The altcoin is now down about 80% in the last 24 hours. The market crash triggered by FTT quickly spread throughout the market. So much so that the leading crypto Bitcoin (BTC) fell to $ 17,600. Although it recovers a little later, it still continues to be traded around 18 thousand dollars. According to data from crypto analytics firm CoinGlass, $265.83 million worth of cryptocurrencies have been liquidated in the past 24 hours.
Last week, the cryptocurrency community began speculating about the financial health of trading firm Alameda Research, which is controlled by FTX boss Sam Bankman-Fried. It turned out that Alameda’s balance sheet consisted mostly of FTT tokens.
On Sunday, Binance CEO Changpeng Zhao (CZ) announced that he has decided to sell FTT tokens. This has led to tensions between the two major crypto players and their supporters. cryptocoin.comAs you follow, earlier today, news broke that FTX has stopped withdrawals.
Will Binance buy FTX?
Meanwhile, FTX CEO Sam Bankman-Fried (SBF) announced that his exchange has reached a strategic partnership with Binance. According to the SBF, the cryptocurrency exchange is working to clean up its withdrawal savings caused by widespread panic over FTX’s liquidity concerns. In a tweet today, SBF said:
Things went into a full circle. FTX’s first and last investors are the same. We have agreed on a strategic transaction with Binance.
Specifically, the strategic partnership will help clean up the backlog of pullbacks FTX is currently facing. SBF thanked Binance CEO and founder Changpeng Zhao for accepting the partnership. In this context, he said:
A big thank you to CZ, Binance and all our supporters. This is a user-centered development that benefits the entire industry. CZ has done and will continue to do an incredible job in building the global crypto ecosystem and creating a freer economic world.
Regarding the development, CZ shared the following:
This afternoon FTX asked for our help. There is a serious liquidity crunch. To protect users, we signed a non-binding LOI aimed at fully acquiring FTX.com and helping to remove the liquidity crunch. We will be performing a full DD in the coming days.
FTX’s problems began after CZ announced that it would liquidate Binance’s FTT holdings as a post-risk management move. Traders felt that the stock market might be on the verge of bankruptcy. This is why we received a large withdrawal request from FTX to Binance. He dismissed all of the SBF’s bankruptcy concerns. Despite this, users were ready to withdraw their funds from FTX. Meanwhile, FTX recorded nearly $1 billion in outflows last week.
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