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As per his tweet, Binance CEO has confirmed a switch of almost $584 Million price of FTT token to Binance as a part of introduced liquidation course of. As reported by CoinGape, CZ announced right now that Binance will liquidate their FTT token holding in subsequent few months.

What’s the CZ Vs SBF Controversy?

As per studies, Alameda analysis a buying and selling firm owned by Sam Bankman Fried (SBF) was discovered to be holding greater than $3 Billion price of FTX alternate unlocked (FTT) token on their stability sheet. FTX alternate is the issuer of FTT token and can be owned by SBF.

This implies that Alameda Research has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX alternate. Alameda Research has allegedly used the FTT tokens on their books as collateral to borrow USD stables.

It’s arduous to pin level actual purpose for Binance’s motion in opposition to SBF and FTT token. One purpose 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 scale back the publicity and derisk.

Many crypto lovers 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 unquestionably impacting FTT token worth and it has already slumped by greater than 10% in final 24 hrs. $21-$22 is a robust assist area. A breakdown of $21 assist might lead to a really sharp decline in worth printing all time lows for the token worth.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency house for two years now. Previously he co-founded Govt. of India supported startup InThinks and is presently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has revealed greater than 100 articles on cryptocurrency and blockchain and has assisted plenty of ICO’s of their success. He has co-designed blockchain growth industrial coaching and has hosted many interviews in previous. Follow him on Twitter at @sharmasunil8114 and attain out to him at sunil (at) coingape.com

The offered content material might embody the non-public 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 accountability in your private monetary loss.