SBF says ‘FTX is fine. Assets are fine’ after Binance decision to sell FTT amid rumors of liquidity crunch
FTX CEO Sam ‘SBF’ Bankman-Fried took to Twitter to accuse ‘competitors’ of ‘trying to follow us’ and despite their attempts, ‘FTX is fine. is.”
2) FTX is sufficient to cover all client holdings.
We do not invest in client assets (even in the treasury).
We have processed all withdrawals and will continue to do so.
Withdrawal speed details: https://t.co/tSjhJW3JlI
(banks and nodes can be slow)
—SBF (@SBF_FTX) November 7, 2022
The tweet threat appears to be a response to rumors and speculation about liquidity issues at FTX and Alameda Research. This rumor may have influenced Binance’s recent decision to liquidate $500 million of his FTT tokens over the weekend.
SBF went further by claiming that FTX was “enough to cover all customer holdings” and would continue to process all withdrawals. I closed the thread with the following statement, suggesting that there might be.
4) I like it. @cz_binanceif we can work together for the sake of the ecosystem.
—SBF (@SBF_FTX) November 7, 2022
Over the weekend, CZ posted, “We are planning to liquidate Binance’s FTT token as it has recently been revealed.” [sic] We wanted to minimize the “market impact”.
Cope, content creator of The Block, responded As a prime example of the community’s take on SBF’s statement, to SBF with a meme image showing a house on fire along with the caption, “FTX is fine.”
Interestingly, most of the conversations on liquidity issues focused on Alameda Research, not FTX. The SBF’s recent statement does not mention Alameda, instead focusing on ensuring that the crypto community gets the message that “FTX is OK”.
Questions about Alameda’s solvency status could persist until further evidence is presented that Alameda has sufficient assets to support a loan if the price of the FTT token continues to fall. .
The value of the FTT token continued to fall heading into the US market on November 7, reaching $22 in the early hours. Token prices recovered on Nov. 6, following Ellison’s bullish statement that Alameda could buy all of Binance’s FTT tokens for $22. However, any subsequent recovery is hampered as the price struggles to hold onto $22.
As of press time, CZ has not publicly commented on SBF’s statement.
