O Binance CEO Confirmed That It Will Settle All Its FTX Cryptocurrencies, with the action already causing declines in brokerages this Sunday (6), after several portfolios moved. According to an estimate by an analyst who is following the case, it all started last Saturday (5), when cryptocurrency wallets filled with FTX Token (FTT) began depositing the amounts on Binance. In all, the inflow of $500 million of FTT on Binance puts pressure on Alameda Research’s business, which could have loans paid off as the currency plummets. The company is linked to FTX, which could also experience difficulties.
“It appears that CZ is slowly pouring $500 million worth of FTT into the market, if it continues many of Alameda’s FTT guaranteed loans will be liquidated, causing a death spiral. Let the party begin!”
Looks like CZ is slowly dumping $500M worth of FTT on the market, if he continues many of Alameda’s FTT backed loans will be liquidated causing a death spiral.
Let the party begin! pic.twitter.com/lKJ1zwr17S
— Bitcoin vs. Gold (@VersusBtc) November 6, 2022
Binance CEO Indicates He Will Continue to Settle FTX Cryptocurrencies in Bulk
In 2021, Binance began an equity exit process from FTX, after receiving $2.1 billion in BUSD and FTT. However, as the CEO of Binance, in communiqué this Sunday, recent revelations about the FTX exchange led him to liquidate all the cryptocurrencies he still had.
“As part of Binance’s departure from FTX equity last year, Binance received around $2.1 billion in cash equivalents (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books.”
According to the executive of FTX’s main competitor, the process could take a few months to complete. Anyway, the repercussion of the mass sale caused a 10% drop in the last 24 hours of the FTT against the Dollar, which already costs US$ 22.00. In his speech, CZ stated that he is not acting to take down a competitor, but he is protecting himself from worrying rumors regarding FTX. The executive of the largest brokerage in the world recalled that he prefers to cooperate with companies in the market than to see their end. Thus, he declared that he will make the sales of FTT to cause minimal impacts on the market with his departure.
Alameda Research CEO says company won’t be liquidated easily
After the FTT crash, another analyst following the case claimed that someone big is trying to take down SBF, the CEO of FTX, after nearly $600 million was deposited on Binance.
🚨 Yesterday, one of the largest #FTT holders drained their address of their entire balance ($585 million) and sent it to Binance. Around that time, spiked volume. FTT is down add 11% overnight. Is someone big trying to bleed out SBF? pic.twitter.com/FV24t7bYf4
— DIRTY BUBBLE MEDIA: THE ALAMEDA SPECIAL (@MikeBurgersburg) November 6, 2022
However, Alameda Research CEO Caroline Ellison stated that the company is not insolvent, with a few billion dollars still in hedging. Regardless of what she told the market, a spreadsheet circulating on social media has investors worried that FTX could have liquidity problems, with some big players preferring to sell the exchange’s tokens before it’s too late.
