FTT token price is plummeting, broader crypto market also drops 6%.
The significant drop came after Binance announced it would liquidate its holdings in the token.
The crypto market may experience another Luna-like crash.
Nonetheless, Binance insists it does not wish to engage in a dispute.
In the past few hours, the native token for the FTX exchange has dropped by more than 28%. FTT had been trading in the $22 range for the majority of yesterday's trading session. However, it began to fall dramatically during the Tuesday (Nov 8) morning trading session.
At the time of writing, the FTT price dropped 18% in just 12 hours to roughly $17.5. It is currently down 81% from its all-time high of just over $84 in September 2021.
The recent drop indicates that FTT tokens lost more than $500 million in valuation in an hour's time. Furthermore, the market value of FTX Tokens has dropped by nearly a billion dollars in the last four days.
Reason Behind FTX Token Price Drop
The move was reported by a Chinese media reporter. He stated that 12 hours ago, 1.9 million FTT tokens worth around $44 million were transferred from the Genesis OTC Desk to FTX.
Although, several market players speculated that Binance was doing this to compete with FTX. However, CZ has refuted these charges. He stated that it will take months to liquidate the FTT tokens due to market circumstances and liquidity.
With FTT token prices currently falling, it appears that the 2022 crypto contagion is far from over. The broader market is also reacting as well, with a 6% drop in total market cap in the last 24 hours.
What’s Next For FTX
Over the last weekend, Binance announced that it has opted to sell its remaining FTX Token holdings. The development comes in the wake of significant irregularities in the balance sheets of FTC and sister company Alameda Research. Binance is said to have transferred $500 million in FTT tokens to its platform.
This news, combined with Binance's response, has sparked widespread suspicion for FTX, with analysts speculating that it might be another LUNA-like event in the crypto market.
However, as per latest advancement, FTX is dumping hard after binance started liquidating FTT token. As a result, the price of the FTT token took a rebound from the $15 level.
What do you think? Will FTX (FTT) token fall further or will rebound shortly? Share your views in the comment box below.
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