There has been a lot of discussion regarding Binance’s FTX token (FTT) sale. Changpeng Zhao, the CEO of Binance, has tried to fix “misunderstandings”. Stating that he was surprised at the scope of the controversy caused by the FTT transfer, CZ said it was not possible to plan breakthroughs in this breed. Meanwhile, the price of FTT has lost nearly 30 percent in the last 24 hours. It lost price from $23 to $15.4. Here are the details…
Binance’s FTX Token sale was an event
Koindeks.com As we reported yesterday, Changpeng Zhao announced the transfer of 584 million dollars FTT token. Since then, the crypto community on Twitter has had discussions about it. In its announcement, CZ said that the FTT token was transferred to Binance as a module of the liquidation process. He said the exchange will liquidate its FTT token holdings in the next few months.
In response to arguments that CZ “plans to regulate selling in the community,” he said it was surprising. The statement found results in an effort to show the events after the transfer of FTT to Binance. CZ said that it was only after questions arose about the big transfer that Binance decided to make this transparent. He emphasized the need for transparency in the crypto industry. CZ used the following words:
There were questions about a large FTT deposit to Binance ($580 million) and we were transparent about closing our FTT position. It’s surprising that this issue has sparked “controversies” at this level.
FTX CEO blames ‘competitors’
The Binance founder also brought up the issue of whale strikes. It was hinting at the Whale Alert tweet about the massive FTT transfer activity from an unknown wallet to Binance. In fact, all it did was say that the wallet in Whale Alert’s tweet was related to Binance.
Earlier, FTX CEO Sam Bankman-Fried had blamed “competitors” for FTX’s situation. He said a competitor was trying to go after FTX with false rumors. Trying to dispel rumors that the company is on the verge of bankruptcy, he said, “FTX has enough funds to cover all of its client assets.”
FTX Token price crashes, CZ says “we are not the reason for the sale”
Meanwhile, the value of FTT experienced a significant decline. The coin has lost 28 percent in the last 24 hours and fell from $ 23 to $ 15. The recent sharp drop means FTT tokens lost more than $500 million in an hour. Also, the total erosion in the market price of FTX Token is about one billion in the last four days.
Interestingly, crypto reporter Colin Wu reported a large FTX Token (FTT) transfer from Genesis OTT Desk to FTX. He also states that Binance is not behind the recent price drop. The analyst used the following terms:
FTT decreased by 14% at 1 hour without abrupt and SOL decreased by 14% at 24 hours. 1.9 million FTT ($44 million) was transferred from Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not a Binance sale.
Binance rejects FTX’s offer
Last weekend, Binance said it has decided to sell its remaining FTX Token holdings. The development comes amid recent anomalies surrounding the balance sheet of FTX and sister company Alameda Research. Binance reportedly transferred half a billion worth of FTT tokens to its platform. This news following the Binance action triggered great suspicions for FTX as analysts thought that there could be another LUNA-like event in the market.
A few market enthusiasts said that Binance did this as part of its competition with FTX. However, CZ denied these arguments. He also talked about his transfer to Binance, saying that FTT tokens are part of the liquidation process. However, Binance is definitely planning to liquidate FTT tokens in the next few months. Interestingly, Binance CEO rejected the offer to sell the tokens to FTX. He said he would prefer the coins to remain in the free market.