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On Sunday, November 6, Binance chief Changpeng Zhao announced that the alternate can be dumping all FTX tokens (FTT). Binance took an exit from FTX fairness final 12 months because of which it obtained $2.1 billion in money.

Soon after CZ made the announcement, the FTX token value got here beneath extreme stress. As of press time, FTT is buying and selling 6% down at a value of $22. The native cryptocurrency of the FTX alternate has misplaced 20% over the final week. In a pointy message on Twitter, CZ said:

“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards”.

Following the withdrawals from Binance, different gamers have additionally joined in. As per data from PeckShiled,

Jump Trading has withdrawn about 40.4 million USDC from FTX in the previous 24 hours. About $109.8 million price of cryptocurrency has been transferred from FTX to crypto lending platform Nexo, together with 56,432 ETH and about $13.9 million in stablecoins.

FTX Chief Addresses the Rumors

There have been controversial stories floating with FTX alternate and its sister concern Alameda Research. The controversy notes: “Both these firms have different businesses but the balance sheet of Alameda research shows significant amount of unlocked FTT token worth nearly $3.66 Billion out of total $14.6 billion”.

The controversy is surrounding the illiquid tokens which Alameda Research has been exhibiting on its stability sheet. Hence these main liquidations in the market. Note that each these companies are owned by Sam Bankman-Fried.

In his newest Twitter thread, SBF has come clear addressing the rumors in the market. He said that FTX and its group of corporations are extremely regulated and that they preserve all audited financials. However, he said that FTX customers needn’t panic as all the withdrawals are working nice.

We’ve already processed billions of {dollars} of deposits/withdrawals at present; we’ll preserve going. (Taking up anti-spam checks to course of extra–sorry in the event you bought these. We’re hitting node fee capability, will preserve going.) Also tons of USD <> stablecoin conversions going on.

He additionally thanked all their supporters who continued to stick with the alternate.

Bhushan is a FinTech fanatic and holds an excellent aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary abilities.

The introduced content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty to your private monetary loss.