The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, said his company will liquidate the entirety of its position in FTX Token (FTT), the native token of competing exchange FTX.
U 6. novembru cvrkut, Zhao said the decision was made after “recent revelations that have came to light.”
In a later tweet, CZ explained the FTT liquidation was “just post-exit risk management” referring to lessons learned from the fall of Terra Luna Classic (LUNC) and how it impacted market players.
He also added “we won’t support people who lobby against other industry players behind their backs.”
Likvidacija našeg FTT-a je samo upravljanje rizikom nakon izlaska, učenje od LUNA-e. Ranije smo davali podršku, ali se nećemo pretvarati da vodimo ljubav nakon razvoda. Mi nismo protiv nikoga. Ali nećemo podržati ljude koji lobiraju protiv drugih igrača u industriji iza njihovih leđa. Naprijed.
- CZ Binance (@cz_binance) Novembar 6, 2022
Cointelegraph understands that Binance’s decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alameda’s assets are tied up in FTX’s token.
Alameda Research CEO Caroline Ellison in a Nov. 6 tweet however said the balance sheet wasn’t reflective of the true story, noting that the sheet in question is only for “a subset of our corporate entities” and other assets worth over $10 billion “aren’t reflected there.”
– bilans stanja izbija nekoliko naših najvećih dugih pozicija; očigledno imamo živice koje nisu navedene
– given the tightening in the crypto credit space this year we’ve returned most of our loans by now— Caroline (@carolinecapital) Novembar 6, 2022
Bankman-Fried backed Ellison’s claim in a cvrkut, saying a “bunch of unfounded rumors have been circulating.”
Cointelegraph contacted Binance for clarification about the reasons behind the liquidation, a spokesperson said the company has no further updates “at this time.”
Povezano: Bankman-Fried obmanjuje regulatore usmjeravajući ih dalje od centraliziranih finansija
Zhao didn’t state how much FTT Binance would sell but revealed the exchange held around $2.1 billion U.S dollar equivalent in Binance USD (BUSD) — the exchanges stablecoin — and FTT due to its exit from FTX equity last year.
He added Binance would try to sell the tokens in a way that “minimizes market impact” stating he expects the token sales to take “a few months to complete.”
Analiza na lancu showed nearly 23 million FTT worth around $584 million at the time transferred from an unknown wallet to Binance which Zhao confirmed as part of the exchange’s token offloading.
Da, ovo je dio toga. https://t.co/TnMSqRTutr
- CZ Binance (@cz_binance) Novembar 6, 2022
The cijena FTT-a whirled on the series of announcements and within a two-hour period on Nov. spiked the price from around $23 to $24.50 followed by a crash of over 9% to $22.28. FTT is down over 4.3% over the last 24 hours trading around $22.50.
Source: https://cointelegraph.com/news/binance-to-liquidate-its-entire-ftx-token-holdings-after-recent-revelations