Panic Button Hit: This Altcoin Withdraws Quickly!

Binance, the largest cryptocurrency exchange in terms of daily transaction volume, has recently attracted attention for its FTX Token (FTT) sale. The recent transfer of $500 million worth of FTX Tokens (FTT) to Binance has created great skepticism about the financing of the crypto exchange. FTX CEO Sam Bankman-Fried assured that everything was working properly, but investors pressed the panic button. In just two days, the benchmark altcoin Ethereum (ETH) on the exchange has dropped in significant form. Here are the details…

Amid the FTX crisis, leading altcoin ETH also withdraws from wallets As we have also reported, Binance CEO Changpeng Zhao said that he will sell his FTTs. This caused tension in the market and some influencers advised users to withdraw their funds from FTX. Thus, alongside the FTT liquidation, users are withdrawing major altcoins such as Ethereum from the main FTX wallet. According to on-chain data, more than 90 percent of Ethereum (ETH) came out of the FTX main wallet in the middle of the Binance drama. On chain information provider Santiment used the following words:

In just two days, the amount of Ethereum held in FTX’s main wallet has dropped from 322,000 to 32k. At one point, the wallet tanked to the output of 500 per minute. Due to the ongoing feud, the unpredictable situation may continue.

FTX CEO warrants

The crypto winter of 2022 has caused many players to freeze their user withdrawal processes. This has caused considerable concern in the middle of the crypto community. As a result, a random negative sentiment resulted in a sharp reaction as seen when Ethereum pulled out of FTX. FTX CEO Sam Bankman-Fried assured that things were going well. He wrote in a tweet yesterday:

A competitor is trying to come after us with false rumors. No problem with FTX. Assets are available. FTX is enough to cover all client assets. We do not invest in client assets (even treasures). We have completed all withdrawal processes and will continue to process them. Even if that slows us down, it’s tightly regulated. We have over $1 billion in cash, we have GAAP controls. We have a long history of preserving customer assets, and that holds true today.

Binance draws attention to $ 8 billion ETH deposits

While large ETH withdrawals are taking place on FTX, Binance CEO capitalized on this bet and added that there are over $8 billion in ETH deposits in the two cold wallets. “This is not our money. These are user entities. We are only custodians,” he added.

It’s not clear whether CZ is trying to lure FTX users with his statement. The price of FTX Token has lost close to 30 percent in the midst of a major sale. It is currently trading at $15.8.

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