Sudden Drop In The Price Of This Altcoin: Did Binance Dump?

The biggest cryptocurrency local exchange of FTX altcoin FTT came under pressure and has lost more than 10% in the last 24 hours.

The reason why FTT has experienced a massive sale by investors may be the news that 23 million tokens, equivalent to $580 million, have been moved to the Binance exchange.

The $584 Million FTT Altcoin Moved to Binance Aroused Controversy

According to rumors circulating in the crypto world, this volume may have occurred after Binance’s investment in FTT was unlocked.

Whale Alert, a Twitter address that follows the movements of whale accounts in the cryptocurrency market, also reported the development. According to Whale Alert, 23 million FTT tokens worth a total of $584 million have been moved to an unknown wallet on Binance.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 22,999,999 #FTT (584,818,174 USD) transferred from unknown wallet to #Binancehttps://t.co/Nm2jz9MKW0

— Whale Alert (@whale_alert) November 5, 2022

The move of half a billion dollars in FTT altcoin volume to Binance, probably by the exchange itself, is actually a result, not a cause. This has its origins in a recent investigation into the assets of FTX and affiliated trading firm Alameda Research.

Colin Wu Thinks Binance May Have Withdrawn FTT Tokens Not To Sell, But To Move To A Single Address

Without going into the details of the investigation, he states that it reveals the fragility of Alameda’s balance sheet, according to which the firm’s biggest asset is FTT, and that they borrow money from creditors with it. In addition, Changpeng Zhao, the head of Binance, also liked the news of the investigation on Twitter.

At the same time, the claim that Binance will abandon FTT may be false, according to Colin Wu, a well-known crypto journalist. The journalist suggests that the exchange may have moved all its tokens to a single address after some of its investments were unlocked.

*Not investment advice.