Binance CEO CZ announced on Monday that the exchange will liquidate its remaining FTX (FTT) token holdings.
Earlier, Binance's CEO confirmed that over $584M in FTT tokens have been transferred to Binance as part of the announced liquidation process.
Earlier, CZ announced that Binance will liquidate its FTT token holdings in the coming months.
What's the CZ vs SBF Debate?
As per reports, Alameda Research, a trading company owned by Sam Bankman Fried (SBF), was discovered to have more than $3 billion in FTX exchange unlocked (FTT) tokens on its balance sheet. The FTT token is issued by the FTX exchange, which is also owned by SBF.
This indicates that Alameda Research owns billions of dollars in FTT tokens issued by Sam's other business FTX exchange. Alameda Research is suspected of using FTT tokens as security to borrow USD stables.
It's difficult to pinpoint the trigger signal for Binance's action against SBF and FTT tokens. One reason could be that Binance considers owning FTT tokens as a liability. This liquidation of FTT token holdings could be an attempt to limit risk and exposure.
Many crypto enthusiasts are also questioning what is preventing Binance from selling their FTT holdings directly to Sam Bankman-Fried and FTX rather than dumping them on the open market.
Ran Neuner, a crypto influencer, accused Binance CEO of purposely dumping FTT tokens. He pointed out that CZ sold his stake last year and is just selling now to affect the over-leveraged Alameda research. CZ replied to his tweet by refuting the rumors.
FTT Prices Fall
The incident is clearly having an impact on the FTT token price, which has already dropped by more than 8% in the last 24 hours. The $21-$22 range is a strong support zone. A breakdown of the $21 support level might result in a very sharp drop in price, printing all-time lows for the token price.