• Fri. Sep 29th, 2023



FTX token collapsed by almost 30%


Dec 26, 2022

FTX token collapsed by almost 30%

In a few hours, the FTX exchange-token quotes fell by approximately 28%-from levels above $ 22 to marks below $ 16.

The fall in the price occurred against the background of the continuation of the confrontation of FTX and BINANCE, as well as fears regarding the financial stability of Sam Bankman-Fried Exchange.

At the same time, the price of bitcoin failed the level of $ 20,000, pulling the entire market. FTX token correction was the deepest of the top The U.S. has decided 50 assets for capitalization.

On November 6, CEO Binance Chanpen Zhao announced the company’s desire to get rid of ftt. Assets together with Busd in a total of ~ $ 2.1 billion steel by the company output from portfolio investment in FTX.

He emphasized that the decision is not directed against the competitor, since Binance is important to maintain the stability of the developing industry. The reason was “recent revelations”, Zhao explained.

Presumably, he had in mind the investigation of Coindesk, which revealed the details of the balance of the company Alameda Research, closely related to FTX.

“Everyone wants more transparency in our industry, true? My tweets were simple. There were questions about a large ($ 580 million) FTT deposit on Binance, and we openly stated that we were closing this position, ”the Zhao commented on the discussion.

CEO ALAMEDA Research Caroline Ellison announced her readiness to buy FTT tokens from Binance for $ 22.

At the request to comment on the proposal, Zhao asked the question:

“They have or buy $ 580 million BNB?””.

However, he rejected the assumption that Binance offers Alameda to buy BNB, then exchange for ftt.

“I did not say that. It was a question, not an obligation. I think we will stay in the free market, ”he said.

Initially, Zhao assured that Binance will sell for several months to minimize the effect on the market.

He again emphasized that the decision to close the position in FTT is not directed against the competitor. At the same time, the head of Binance gave a reference to the thread of the analyst of Miles Doycher, in which he outlined an alarming signals regarding the financial situation of Alameda and FTX.

On weekends, users reported the problems of withdrawal from the exchange. The FTX team explained the difficulties with Bitcoin translations of low blockchain throughput. With regard to delays in the processing of transactions in stablecoins, the exchange proposed to wait for the work of financial organizations.

On Tuesday, November 8, the platform said that the line of applications for the withdrawal is reduced to a “reasonable level”.

Analysts noted that against the backdrop of disagreements with Binance, the exchange was faced with a reduction in deposits. According to Dune Analytics, a clean outflow of funds from the platform exceeded $ 955 million – $ 487 million over the past two days.

“A competitor is trying to pursue us with the help of false rumors. FTX and assets are in order, ”wrote Bankman-Fried.

Arcane Research analysts noticed that after the July decision of the commission in pairs with Bitcoin, Binance increased a share both in the spot market and in the trade in derivatives. In many ways, this happened at the expense of FTX .

SCOOP Protocol experts calculated that over the past week about 20% of all Binance deposits received FTX (~ $ 1.17 billion).

Discussing the sale of FTT, in one of the tweets, Zhao hinted to a possible fate of token, recalling that Binance now owns Luna (now – LUNC) the victim of the terra project.

“If, unfortunately, FTX will become another Luna, no one in the industry, including Binance, will benefit from this incident. Both clients and regulators will lose confidence in the entire industry. I hope Zhao will think about stopping the sale of FTT and concluding a new deal with Bankman-Fried, ”the founder of OKX Star Xui expressed his position.

Recall that in July 2021, FTX, following the round of financing of the series B, attracted $ 900 million.

The deal gave the necessary resources for the redemption of the shares belonging to Binance for an unnamed amount that it invested in the platform in December 2019.

Bankman-Fried later explained the “divorce” with Binance by the difference in the approaches to doing business.

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