On Sunday, Binance’s CEO Changpeng Zhao (CZ)said that the exchange platform is liquidating all of its FTX tokens (FTT) tokens on its books. According to the CEO, Binance gained $2.1 billion in FTT and BUSD (Binance’s stablecoin) after selling its FTX ownership last year. Binance invested in FTX at the beginning. We have chosen to liquidate any remaining FTT on our books as a result of recent developments, Zhao stated.
According to Changpeng Zhao, the FTT tokens that Binance is looking to sell represent a portion of the $2.1 billion equivalent in FTT and BUSD tokens that Binance received after departing the FTX equity market last year.
According to Zhao, the platform will take approximately months for it to offload the digital tokens, he pointed out the reason for this was because of the current market condition and limited liquidity in the market.
FTT token has decreased 7.6% in the previous 24 hours as a result of the news, and it is now trading at $22.62. The token is now 73% below its all-time high of $84.18. According to Etherscan data, 22,999,999 FTT worth $584 million was deposited from a wallet address to Binance on Saturday. This makes up about 17% of the overall supply of FTT that is in circulation.
Critics claim that Bankman-plan Fried’s to establish industry standards endangers both the fundamental principles of DeFi and the leading DeFi teams and platforms in the market. Bankman-Fried has backed off to reevaluate his position on DeFi regulation, nevertheless.
Moreover, according to reports the CEO of Alameda Research, Caroline Ellison, posted on Twitter that she will be honored to buy the FTT tokens from CZ today at a rate of $22 if he wants to minimize market impact.
She claimed in subsequent tweets that the most recent balance sheet information did not accurately reflect all of Alameda’s assets. She continued by saying that the specific balance sheet that is now in circulation only includes a portion of its business entities and that the trading company has assets worth over $10 billion that are not included.
Additionally, some people think the FTT sale may have something to do with Bankman-major Fried’s trading company, Alameda Research’s financial standing. The same strategy that wrecked Celsius Network appears to be the foundation of Alameda Research’s finances, according to an article released by Dirty Bubble Media on Friday.