On Monday (07), Binance CEO Changpeng Zhao (CZ) reported that the cryptocurrency exchange would sell all of its FTT tokens, from competitor FTX, amid friction between the companies, in what he called “management”. risk”. At the time, Caroline Elison, CEO of Alameda Research – FTX’s sister company – offered to buy Binance’s FTT holdings for $22 per token to limit the market’s impact of the settlement. At the time of writing, FTT is priced at $16.97, after dropping more than 23% in the last 24 hours. But CZ turned down Elison’s proposal. In response to a person on Twitter, the executive said he prefers to stick with the “free market”. It is worth noting that CZ had said that he would not dump all of Binance’s FTT tokens onto the market at once. Instead, Binance’s CEO stated that this process would take a few months: “Due to market conditions and limited liquidity, we expect this to take a few months to complete,” CZ said at the time.
Understand the Binance vs FTX case
Cryptocurrency exchange FTX is at the center of rumors that claim the platform may be insolvent. In fact, speculation revolves around FTX’s sister company, Alameda Research, which would have a massive amount of FTT tokens on its balance sheet. However, FTX CEO and Alameda founder Sam Bankman-Fried (SBF) has denied the rumors. On his Twitter account, “SBF” stated that the speculations are an attempt at “persecution” by a competing company. In this case, Binance. “A competitor is trying to harass us with false rumors. The FTX is fine. Assets are fine,” he tweeted. Regarding Alameda’s leaked balance sheet, which showed the company held BRL 18.6 billion in “unlocked FTT” and BRL 10.9 billion in “FTT guarantee”, Ellison said the document was only partially complete. That is, it did not include billions of dollars in other assets.
CZ denies stalking
Despite SBF claiming that the case is about a “stalking”, CZ rejected this idea. On his Twitter account, the Binance CEO explained that he didn’t “orchestrate” all of this as many claim: “There were questions about a large FTT deposit ($580 million) for Binance, and we were transparent about the fact that we were closing. our FTT position”, tweeted. “The fact that it provoked such levels of ‘discussions’ was surprising. There were also conspiracy theories that I somehow orchestrated this whole thing. If you read this thread, you would appreciate that no one can orchestrate this.” completed. THE thread that CZ referred to was published by analyst Miles Deutscher. He wrote that while FTX’s SBF appeared invincible, “saving” many crypto companies from the market crash after the Terra (LUNA) debacle, things changed when Alameda CEO Sam Trabucco suddenly resigned and when the FTX President Brett Harrison stepped down in September. As Deutscher pointed out, these waivers came shortly before it was revealed that FTX was facing some legal troubles in the form of an investigation by the securities regulator.
SBF would have political interests
According to the analyst, the CEO of FTX has “political interests at heart” and this is clear from his political donations. In addition, Deutscher noted that SBF showed support for a bill that could pose significant threats to the DeFi industry. “The sentiment changed when people realized that their intentions might be different than they thought before. This shift in sentiment was the precursor to what was to come and a major contributor behind the gravity of the recent FUD,” he explained. Then, the analyst said that the Alameda balance sheet leak that showed the company has a huge amount of FTT was the “final straw” for the current FUD and the FTT token price drop. The digital asset has accumulated a devaluation of 35% in the last seven days and 23% in the last 24 hours.
