Binance CEO Compares This Altcoin To LUNA! The Trouble Grows

During the night, there was a tension in the middle of Binance and FTX, two of the largest cryptocurrency exchanges. Binance CEO Changpeng Zhao pointed to the possibility that FTX’s native token FTT will experience a precedent drop to the LUNA collapse. Here are the details…

Binance CEO talks about FTX and FTT

Koindeks.com As we have also reported, the crypto winter has caused a liquidity crisis for some large crypto firms. In the wake of the Terra (LUNA) collapse, companies such as Three Arrow Capitals, Celsius, and Voyager have been hit hard in the crypto market. The crypto community now fears that FTX and Alameda may face a major liquidity crisis and bankruptcy. The second most powerful crypto billionaire, Sam Bankman-Fried, is the founder of both FTX and Alameda.

The liquidity crisis surrounding Alameda came to the fore. Alameda is heavily exposed to FTX tokens. Reports reveal that as of June 30, unlocked FTT tokens, with the largest $3.66 billion of $14.6 billion in assets owned by Alameda. That’s why Binance’s CEO announced that the company will gradually sell all its FTT holdings. The $584 million FTT was actually transferred to the Binance exchange.

CZ argues that he wants to reduce the market impact of the liquidation. However, Ran Neuner, a CNBC crypto trader, believes he may be holding the tokens to inflict maximum damage on FTX and Alameda. It also reveals that Alameda is taking advantage of FTX tokens. If there is enough selling pressure, they may face a margin call or liquidation. FTT has dropped close to 12 percent in the last 7 days.

Bankman-Fried responded to the developments

Following the development, FTX CEO Sam Bankman-Fried responded to Binance’s sale of FTT (FTX) assets. He sought cooperation amid major industry players, not citing developments in Alameda Research or Binance’s sale of FTT. CZ has announced that it will gradually liquidate FTT to mitigate any market influence. Moreover, he emphasizes that this is not an attempt to harm FTX. By precedent, SBF claims that it respects CZ’s contribution to the crypto community. He states that key market heads should create Blockchain, not war.

Alameda offered to buy FTT

Dylan LeClair, a senior analyst at UTXO Management, also reveals the liquidity crisis Alameda is facing. Alameda Research CEO Caroline Ellison has offered to buy FTT from Binance for $22. Alameda Research provides valuable exposure to FTX tokens FTT. On June 30, Alameda held $14.6 billion in assets

Out of $14.6 billion, unlocked FTT tokens account for $3.66 billion. This means that Alameda has a high degree of investment in FTX. This raises questions about its immediate financial viability. LeClair believes this is due to the company’s intention not to let the market price drop below $22. This adds to alarms about a possible Alameda and FTX bankruptcy.

Swan Bitcoin’s CEO, Cory Klippsten, has voiced his concerns over the news that Binance has transferred over $560 million in FTT to the exchange. He believes FTX has major bankruptcy problems and considers it technically bankrupt. Lark Davis, a major crypto influencer, is emphasizing his followers to get their crypto out of FTX.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Advertisment

Most Popular