CZ Confirms Transfer Of FTT Tokens Worth $584 Million To Binance
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 immediately 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 alternate unlocked (FTT) token on their stability sheet. FTX alternate is the issuer of FTT token and can be owned by SBF.
Which means Alameda Analysis has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX alternate. Alameda Analysis has allegedly used the FTT tokens on their books as collateral to borrow USD stables.
It’s exhausting to pin level precise motive for Binance’s motion towards 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 lovers are additionally arguing that what’s stopping Binance from promoting their FTT holding on to Sam Bankman-Fried and FTX as a substitute of dumping in open market.
Crypto influencer, Ran Neuner accused Binance CEO for intentionally dumping FTT token. He identified that CZ has already bought his stake final 12 months 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 value 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 value printing all time lows for the token value.
