FTX Discharges These Coins To Exchanges: Binance Makes Announcement!

FTX, which plunged the crypto money market into a deep crisis with its collapse, is now dumping locked tokens on exchanges. Binance and Huobi blocked FTT deposits after $400 million in tokens were illegally released. The tokens were illegally released from FTT’s main distributor address.

FTX illegally freed FTTs, what’s going on?

Crypto exchanges Binance and Huobi blocked deposits of FTT’s native tokens, following the deprogramming of nearly $400 million in tokens on Sunday. FTT tokens follow an unlocking program in which large clusters of tokens are periodically released. However, on Sunday, the tokens were released from the program without any warning or link from FTX or interested parties.

According to blockchain data, more than 192 million FTT tokens have been released. These were released from the main deployer. Binance founder Changpeng Zhao made the following statement on Twitter:

Binance has stopped FTT deposits to avoid questionable additional supply potential affecting the market. We also encourage other exchanges to do the same thing. FTT contract distributors moved the entire remaining supply of FTT at the cost of $400 million that had to be opened in bulk. I’m not quite sure what’s going on.

After a short while, Huobi Global, based on Justin Sun, followed this move. In this context, Borsa İstanbul CEO Sun stated that “(We) will closely monitor the situation”.

Discharge of FTTs came after filing for bankruptcy defense

The cryptocurrency market is experiencing a tragedy in the literal sense. FTX, one of the largest crypto exchanges, has crashed dramatically. However, events were not limited to this collapse. What happened in the background of the collapse and the works of former CEO Sam Bankman-Fried are still under the microscope. Koindeks.com As you followed, FTX filed for bankruptcy protection under Section 11 on Friday. The release of FTT follows a week-long drama featuring FTX in this application. Contagion risks now permeate the wider crypto market.

In this midst, the FTT token fell 18% to $1.78 on Sunday. The catastrophic crash of the FTX stock market has led to price drops in eight of the last nine days. Thus, the token fell 93% in November alone. A year ago, FTT’s market cap was around $8 billion. It’s now down to about $350 million, according to CoinGecko. But new questions about the circulating supply of the token complicate the calculation.

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