Cryptocurrency

Fears of Terra Luna style collapse of FTX native token FTT as Binance liquidates its holdings

FTX’s native token, FTT, experienced a volatile weekend as Binance began liquidating the token. [sic] Binance CEO CZ said: As of press time, FTT token is down his 9.4%.

ftx ftt
FTT token

However, the local low of $12.42 on Nov. 6 was down 15% from Saturday, Nov. 5. .

Binance sells over $500 million in FTT tokens

Rumors of CZ’s involvement began early on Sunday, November 6, when FTX’s native token, FTT, plummeted. There are concerns that this downturn could trigger a liquidation of his FTX, resulting in a Terra Luna-style โ€œdeath spiralโ€.

Most of FTX’s crypto assets are associated with FTT tokens, valued at $14 billion. So, before the token starts to recover, a 15% drop in price would reduce FTX holdings by about $2.1 billion.

The FTT tokens held by Binance are assets received as part of the exit from the initial investment in FTX. While this news may seem bearish for his FTT, CZ said: intended Liquidate tokens in a โ€œminimal market impactโ€ manner.

CZ too rejected The move is an act of aggression against its competitors, making it clear that “every time a project publicly fails, all users and all platforms are hurt.”

Is FTX currently bankrupt?

Rumors are flying bankruptcy The issue of Alameda Research, the company behind FTX CEO Sam Bankman-Fried’s empire. A Substack article published on Nov. 4 states that โ€œFTT token is another stupid flywheelโ€ similar to Celsiusโ€™s CEL his token.

Similarities between the two tokens were noted in the report, with on-chain data stating that โ€œFTT ownership is highly concentrated, with 93% of total tokens held at just 10 addresses.โ€ clarifying.

Volatility has been outlined by CryptoCred to play-by-play the weekend’s revelation on the price action of the FTT token.

SBF retweeted a post by Caroline Ellison, current CEO of Alameda Research. Ellison claimed that the corporate group has more than $10 billion in assets for her, not included in recently leaked figures.

Outside of retweets, SBF is not publicly concerned about volatility. feature Instead of fear of bankruptcy.

Ellison responded directly to CZ on Twitter, claiming that the CEO of Binance is his goal, to minimize market impact, Alameda is willing to “get everything from you today for $22. buy it,” he said.

Nevertheless, the crypto community has been focused on the issue throughout November 6, as Swan Bitcoin’s Bitcoin Maxi questioned whether there was “$580 million lying around” for the SBF to buy back its tokens. I was.

This is a work in progress. This article will be updated as more information becomes available.

Update Nov 6 6pm: SBF has done little to quell fears by trolling CZ and the crypto community with a continued focus on new FTX features. Talking about the feature, he indicated that the available USD balance was only $6,311 and joked to users that this was FTX’s reserve balance.

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