There has been a lot of discussion regarding Binance’s FTX token (FTT) sale. Changpeng Zhao, the CEO of Binance, has tried to fix “misunderstandings”. Stating that he was surprised at the scope of the controversy caused by the FTT transfer, CZ said it was not possible to plan such moves. Meanwhile, the value of FTT has lost nearly 30 percent in the last 24 hours. It fell from $23 to $15.4. Here are the details…
Binance’s FTX Token sale was an event
cryptocoin.com As we reported yesterday, Changpeng Zhao announced the transfer of the $584 million FTT token. Since then, the crypto community on Twitter has had discussions about it. In its announcement, CZ said that the FTT token was transferred to Binance as part of the liquidation process. He said the exchange will liquidate its FTT token holdings in the next few months.
In response to allegations that CZ was “planning to regulate the sale in the community,” he said it was surprising. The statement found results in an effort to show the events after the transfer of FTT to Binance. CZ said it was only after questions arose about the big transfer that Binance decided to make this transparent. He highlighted the need for transparency in the crypto industry. CZ used the following statements:
There were questions about a large FTT deposit to Binance ($580 million) and we were transparent about closing our FTT position. It’s surprising that this topic has caused such “controversies” at this level.
FTX CEO blames ‘competitors’
The Binance founder also brought up the issue of whale warnings. He was hinting at the Whale Alert tweet about the massive FTT transfer event from an unknown wallet to Binance. In fact, all it did was say that the wallet in Whale Alert’s tweet was owned by Binance.
Previously, FTX CEO Sam Bankman-Fried had blamed “competitors” for FTX’s status. He said a competitor was trying to go after FTX with false rumors. Trying to dispel rumors that the company is on the verge of bankruptcy, he said, “FTX has enough funds to cover all of its client assets.”
FTX Token price crashes, CZ says “we are not the reason for the sale”
Meanwhile, the value of FTT experienced a serious decline. The coin has lost 28 percent in the last 24 hours, falling from $ 23 to $ 15. The recent sharp drop means that FTT tokens have lost more than $500 million in an hour. Also, the total erosion in the market capitalization of FTX Token is about one billion in the last four days.
Interestingly, crypto reporter Colin Wu reported a large FTX Token (FTT) transfer from Genesis OTT Desk to FTX. He also states that Binance is not behind the recent price drop. The analyst used the following statements:
FTT suddenly fell 14% at 1 hour and SOL dropped 14% at 24 hours. 1.9 million FTT ($44 million) was transferred from Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not a Binance sale.
Binance rejects FTX’s offer
Over the weekend, Binance said it has decided to sell its remaining FTX Token holdings. The development comes amid recent anomalies surrounding the balance sheet of FTX and sister company Alameda Research. Binance has reportedly transferred half a billion worth of FTT tokens to its platform. This news following the Binance action has triggered great suspicions for FTX, with concerns that there may be another LUNA-like event in the market.
A few market enthusiasts said that Binance did this as part of its competition with FTX. However, CZ denied these allegations. He also talked about his transfer to Binance, saying that FTT tokens are part of the liquidation process. However, Binance is definitely planning to liquidate FTT tokens in the next few months. Interestingly, Binance CEO rejected the offer to sell the tokens to FTX. He said he would prefer the coins to remain in the free market.
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