The cryptocurrency market witnessed one of the unforgettable crashes today. The chain of events around FTX and Binance led to the collapse of the FTX Token (FTT). However, the collapse of the altcoin project spread throughout the market and the market went into a bloodbath. In this environment, the Australian crypto fund announced that it will sell FTX (FTT) tokens.
DigitalX sells FTT, altcoin price crashes!
DigitalX, an Australian cryptocurrency fund, has decided to liquidate its FTX (FTT) token holdings in light of recent FTX/Binance events, according to Australian Financial Review reports. Listed on the Australian Securities Exchange under the DCC exchange, the fund sold FTT for around $1 million. Liquidated tokens account for roughly 2% of the fund’s total assets. Lisa Wade, leader of DigitalX, said the fund expects a ‘pretty strong’ short-term rebound. That’s why she noted that they don’t want to carry status in the token. However, after Binance’s attack on buying FTX, it is now uncertain whether it will continue to sell.
The altcoin is now down about 80% in the last 24 hours. The market crash triggered by FTT quickly spread throughout the market. So much so that the president crypto Bitcoin (BTC) fell to $ 17,600. Although it recovers a little later, it still continues to see the process around 18 thousand dollars. According to information from crypto analytics firm CoinGlass, $265.83 million worth of cryptocurrencies have been liquidated in the last 24 hours.
Last week, the cryptocurrency community began speculating about the financial health of trading firm Alameda Research, which is overseen by FTX employer Sam Bankman-Fried. It turned out that Alameda’s balance sheet consisted mostly of FTT tokens.
On Sunday, Binance CEO Changpeng Zhao (CZ) announced that he has decided to sell FTT tokens. This caused tension between the two big crypto players and their supporters. Koindeks.comAs you follow, earlier today, the news that FTX has stopped its withdrawal processes fell on the market.
Will Binance buy FTX?
In the middle, FTX CEO Sam Bankman-Fried (SBF) announced that his exchange has reached a strategic subsidiary with Binance. According to SBF, the cryptocurrency exchange is working to clean up withdrawal deposits caused by widespread panic over FTX’s facing liquidity concerns. In a tweet today, SBF said:
Things went into a full circle. FTX’s first and last investors are one-on-one. We have agreed on a strategic process with Binance.
Specifically, the strategic affiliate will help clean up the backlog of pullbacks FTX is currently facing. SBF thanked Binance CEO and founder Changpeng Zhao for accepting the subsidiary. In this context, he said:
A big thank you to CZ, Binance and all our supporters. This is a user-centered development that benefits the entire community. CZ has done and will continue to do an incredible job in building the global crypto ecosystem and creating a freer economic world.
Regarding the development, CZ shared the following:
This afternoon FTX asked for our help. There is a significant liquidity crunch. To protect users, we have signed a non-binding LOI aimed at fully acquiring FTX.com and helping to ease the liquidity crunch. We will be performing a full DD in the coming days.
FTX’s issues began after CZ announced that it would liquidate Binance’s FTT holdings as a post-risk management breakthrough. Traders felt that the stock market might be on the verge of bankruptcy. Therefore, a large amount of withdrawal requests came from FTX to Binance. He dismissed all SBF’s bankruptcy flurry. Despite this, users were ready to withdraw their funds from FTX. In this midst, FTX recorded nearly $1 billion in outflows last week.