Binance's CEO confirmed a transfer of over $584 million in FTT tokens to Binance as part of the announced liquidation process.
Following the announcement, FTX CEO Sam Bankman Fried responded to Binance’s liquidation move.
Instead of addressing specific claims about Alameda Research or Binance dumping FTT, he called for cooperation among major industry participants.
Why is Binance liquidating FTX tokens?
Sam Bankman-Fried, a crypto billionaire, owns two big crypto firms. The first is the leading cryptocurrency exchange FTX, and the second is the trading business Alameda Research. As per sources records, Alameda Research has significant exposure to the FTX tokens, FTT. Alameda has $14.6 billion in assets as of June 30th.
The maximum proportion, $3.66 billion, of the $14.6 billion came from unlocked FTT tokens. This highlights Alameda's extremely high exposure to FTX. It also raises concerns about its financial viability.
Caroline Ellison, Alameda's CEO, has downplayed concerns about the company's financial condition. She says that the financial record examined by sources represents only a subset of the company's holdings. She explains that Alameda has an additional $10 billion in assets that are not mentioned.
FTT token price has fallen because of the negative sentiment around the two companies. It has dropped by 8% in the last 24 hours and more than 12% in the last seven days. The token is currently trading at $22.17.
Binance CEO CZ announced that the exchange's FTT holdings will be liquidated. As earlier reported, $584 million in FTT has been transferred to the Binance exchange for sale.
Will the CZ-SBF War Affect Crypto Market?
The crypto community is preparing for a full-fledged war between FTX and Binance. However, their respective CEOs are attempting to downplay the conflict. CZ reveals that he will progressively liquidate FTT in order to minimize market impact. Furthermore, he emphasizes that this is not an attempt to harm FTX.
Similarly, SBF expresses admiration for CZ's contributions to the crypto community. He believes that key market leaders should focus on building blockchain rather than fighting.
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