As per his tweet, Binance CEO has confirmed a switch of almost $584 Million value of FTT token to Binance as a part of introduced liquidation course of. As reported by CoinGape, CZ announced at the moment that Binance will liquidate their FTT token holding in subsequent few months.
What’s the CZ Vs SBF Controversy?
As per experiences, Alameda analysis a buying and selling firm owned by Sam Bankman Fried (SBF) was discovered to be holding greater than $3 Billion value of FTX trade unlocked (FTT) token on their stability sheet. FTX trade is the issuer of FTT token and can also be owned by SBF.
This signifies that Alameda Research has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX trade. Alameda Research has allegedly used the FTT tokens on their books as collateral to borrow USD stables.
It’s arduous to pin level precise motive for Binance’s motion in opposition to SBF and FTT token. One motive could also be that Binance considers holding FTT token on their books as legal responsibility. This liquidation of FTT token holding could also be an effort to cut back the publicity and derisk.
Many crypto fans are additionally arguing that what’s stopping Binance from promoting their FTT holding on to Sam Bankman-Fried and FTX as an alternative of dumping in open market.
How Low Can FTT Price Slide?
The incident is certainly impacting FTT token worth and it has already slumped by greater than 10% in final 24 hrs. $21-$22 is a powerful assist area. A breakdown of $21 assist might end in a really sharp decline in worth printing all time lows for the token worth.
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