Binance Is Dumping All Its FTX Token (FTT) Assets “Due to Recent Revelations,” CEO Changpeng Zhao confirmed. “Any speculation as to whether this was a move against a competitor, no,” he added. “Our industry is in its infancy, and every time a project fails publicly it hurts every user and every platform.”
Binance liquidates all FTX tokens on its books
Changpeng Zhao (CZ), CEO of global cryptocurrency exchange Binance, announced via Twitter on Sunday that his exchange is liquidating all FTX tokens (FTT) on its books.
The executive explained that Binance received $2.1 billion in BUSD (Binance’s stablecoin) and FTT from its FTX stake exit last year. Binance was an early FTX investor. “Due to the recent exposure, we decided to liquidate the remaining FTT on our books,” Zhao wrote.
In a follow-up tweet, the Binance boss added: “We will try to do so in a way that minimizes market impact. We expect this to take several months to complete due to market conditions and limited liquidity.” He added. “We usually hold the token for a long time. We have held this token for so long.”
CZ also detailed:
Liquidating our FTT is just risk management after exit, learn from LUNA. We’ve supported it before, but we don’t pretend to have sex after a divorce. We are not against anyone. But we will not support those who are lobbying against other industry players behind their backs. forward.
Noting that “Binance always encourages cooperation among industry players,” the CEO claimed that the sale was not “a move against competitors” as some had speculated. He continued: “Our industry is in its infancy, and every time a project fails publicly it hurts every user and every platform.”
Shortly after his announcement, CZ admitted that the Nov. 5 transfer of 22,999,999 FTT to Binance was part of his exchange’s FTX token exit move.
Response from Sam Bankman-Fried
FTX CEO Sam Bankman-Fried Comments on Binance CEO Tweet About FTT wrote: “I was going to write a different post, but I took a deep breath and reminded myself of something we should all remember: We’re all in this together, and I wish ‘everyone’ the best of driving industry-leading.” He continued :
Because I respect everything you guys have done to build the industry we see today, whether they pay back or not, and whether we use the same approach. Including CZ.
FTX published a document titled “Possible Digital Asset Industry Standards” on Oct. 19, which has been met with backlash from the crypto industry. Bankman-Fried, a Democratic mega-donor, has come under fire for his controversial comments on decentralized finance (defi) protocols. Meanwhile, CZ is a major supporter of Defi, having previously stated: “Binance is investing heavily in Defi.”
In addition, it has been suggested that the sale of FTT may also be related to the financial health of Alameda Research, the main trading firm founded by Bankman-Fried.On Friday, Dirty Bubble Media published a article Outlines why Alameda Research’s finances “appear to depend on the same plan to destroy the Celsius network.” The article cites a leaked balance sheet.
What do you think of Binance dumping all its FTX token holdings? Let us know in the comments section below.
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