As per his tweet, Binance CEO has confirmed a switch of practically $584 Million value of FTT token to Binance as a part of introduced liquidation course of. As reported by CoinGape, CZ introduced at the moment that Binance will liquidate their FTT token holding in subsequent few months.
What’s the CZ Vs SBF Controversy?
As per reviews, 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 change unlocked (FTT) token on their steadiness sheet. FTX change is the issuer of FTT token and can be owned by SBF.
Because of this Alameda Analysis has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX change. Alameda Analysis has allegedly used the FTT tokens on their books as collateral to borrow USD stables.
It’s arduous to pin level actual 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 fanatics 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.
Crypto influencer, Ran Neuner accused Binance CEO for intentionally dumping FTT token. He identified that CZ has already offered his stake final yr and he’s promoting now solely to break the over-leveraged Alameda analysis. CZ responded to his tweet denying such rumors.
How Low Can FTT Value 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 robust 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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