Cryptocurrency

FTT temporarily jumps 44% on news Binance to acquire FTX before going into free fall

following the news The troubled FTT token surged 44% after falling 43% since November 5 after Binance acquired the FTX exchange. News that Binance plans to sell his over $500 million on his FTT sent the token plummeting earlier this week.

The token is currently trading around $15.90 after dropping to $14.50 on November 8th. The $22 support was held after Alameda Research CEO Caroline Ellison tweeted that she was willing to buy her FTT token on Binance for $22.

After the announcement, the entire cryptocurrency market appeared to have recovered, but the reversal has now seen FTT down 23% from its daily highs.

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Source: Trading View

Sam Bankman-Fried said on November 7th: Assets are fine while making sure the exchange is “processing all withdrawals”. Furthermore, the SBF said, just hours after Binance announced the proposed liquidation of its FTT holdings, that “competitors are trying to follow us with hoaxes.”

Less than 24 hours later, SBF shared a post thanking Binance CEO CZ, stating, “CZ has done an amazing job building the global crypto ecosystem and will continue to do so. ‘ said.

SBF said the idea of ​​a “conflict” between Binance and FTX in the media is just a rumor. The statement raises questions about the identity of the “competitor” who was “chasing” FTX, if not Binance.

“Binance has repeatedly demonstrated its commitment to a more decentralized global economy while working to improve industry relationships with regulators.

The FTX CEO also confirmed that there are “backlogs” of withdrawals to be processed that need “Binance to come in” to support liquidity. Early on November 8th, crypto slate reported that FTX is showing negative Bitcoin balances. A shortage of BTC on exchanges can affect a “liquidity crunch”.

CZ commented that he expects the FTT token to be “very volatile over the next few days as things develop” as Binance assesses the FTX situation. Furthermore, CZ stated that “Binance has the discretion to withdraw the transaction at any time,” indicating that the acquisition is not a completed transaction.

Commenting on the news that Binance plans to acquire FTX, Ledger CEO and Chairman Pascal Gauthier said: crypto slate.

“If one of the world’s largest centralized exchanges finds itself in financial trouble, we have good reason to worry about the security of our digital assets. I was.

This message is more urgent than ever: If you don’t own the key, you don’t own the crypto, no matter what guarantees are published in the next few days. ”

After the collapse of Celsius, Voyager, and several other exchanges in 2022, Gautier’s comments are less true for many crypto investors. plays an important role in the flow of However, the heart of cryptocurrencies is the ability to own financial assets independently of third parties such as banks and governments.

Today, cryptocurrency exchanges need to act as fiat entry points to perform high-frequency trading, gasless spot trading, customer support, derivatives trading, and more. However, holding cryptocurrencies on an exchange means that investors accept a certain amount of third-party risk. Storing cryptocurrency in a hardware wallet returns authority to the wallet’s private key holder.

As noted by CZ, Binance’s deal with FTX is far from concrete at this stage, and it’s unclear what effect further declines in FTT’s price will have on the acquisition.

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