This week’s crypto community controversy was extremely intense. Over the past hour, the price of FTT, a token created by the cryptocurrency exchange FTX, has been witnessed falling. The announcement coincides with a high-profile stalemate between FTX and Binance, two of the biggest exchanges in the cryptocurrency market. On 6 November 2022, Binance CEO Changpeng Zhao tweeted that the exchange would start liquidating its FTX token holdings as a result of “recent revelations.” It appears that Zhao was alluding to an earlier story from local media that exposed specifics of Alameda Research’s balance sheet. Sam Bankman-Fried, who runs FTX, is the owner of the cryptocurrency trading company Alameda.
FTT was trading for $15.97 at the time of publication, according to data from CoinMarketCap. The asset lost 28.4% on a daily basis and fell from a high of $23.15 in value.
A recent altercation between Changpeng Zhao, CEO of Binance, and Sam Bankman-Fried of FTX may have been the cause of this sell-off. In a Twitter debate, the former claimed that Binance will soon sell its FTX Token holdings. CZ explained the reasoning for this move by bringing up Alameda Research’s financial sheet and asserting that “new findings” had forced the exchange to take this step.
CZ also disclosed that Binance would sell its $500 million investment in FTX.
Then it was discovered that a staggering 22,999,999 FTT had been sent from an unidentified wallet to Binance. CZ added that it was a part of the liquidation procedure in its statement.
Following the anticipated exchange, SBF pressed Binance to collaborate with FTX for the sector’s benefit. The offer to purchase Binnace’s FTX Token’s holdings at a price of $22 per token was then made by Caroline Ellison, CEO of Alameda.
CZ stated earlier today that this discussion with SBF wasn’t a fight. In response to claims that he “orchestrated this whole thing,” he denied the claims. CZ further stated,
“Everyone wants more transparency in our industry, right? My tweets were simple. There were questions about a large ($580m) FTT deposit to Binance, and we were transparent about the fact that we are closing our FTT position.”
Over $2M FTT Liquidated
Over $2 million in FTT long bets had been liquidated, according to data collected by CoinGlass. Over the past 12 hours, this was completed.
At the time of writing, FTT liquidations had totaled $3.86 million over the previous day. There was also a staggering $200 million in open interest for FTT.