Binance Liquidates Entire FTT Holdings - Blockchain.News
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Binance Liquidates Entire FTT Holdings

Binance is liquidating its remaining FTT holdings, according to the crypto exchange CEO Changpeng "CZ".


  • Nov 07, 2022 08:30
Binance Liquidates Entire FTT Holdings

Binance is liquidating its remaining FTT holdings, according to the crypto exchange CEO Changpeng "CZ".

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However, CZ has not clarified the reason behind liquidating FTT - the native token of rival FTX exchange, besides simply stating "recent revelations that have come to light."

"As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4" 

CZ also took to Twitter to publicly announce that the liquidation is not a tactic to take a shot at FTX.

In response to the latest move from CZ, Alameda’s CEO, tweeted that her trading firm’s financial condition is more robust. She also offered a buyback offer by responding to the Binance CEO’s post.

"@cz_binance if you're looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!"

The move from Binance has come after weeks of criticism put against FTX's founder and Chief Executive Sam Bankman-Fried for his regulatory proposals.

Bankman-Fried published a proposal on October 19, which has turned controversial. It is a detailed blueprint for regulatory oversight and industry standards in the digital asset space.

According to critics, Bankman-Fried's proposal to set industry standards threatens DeFi's core ideology and threatens the space's leading DeFi teams and platforms. However, Bankman-Fried has taken a step back to reconsider his stance on DeFi regulation.

The funds held by Binance were received from FTX last year as part of its exit from an equity position in the company, which it had since 2019.

FTX bought out Binance's stake in the company with a $21 billion mix of FTT and stablecoin native to Binance's exchange, BUSD, according to CZ.

He added that the liquidation would take a few months due to the ongoing negative market sentiments and limited liquidity. Furthermore, the company is aiming to conduct liquidity in a manner that will reduce the impact on the market.

Nonetheless, FTT has dipped 9.5% over the past day to $23.03 from $25.55, according to CoinGecko.

Data from Etherscan showed that 22,999,999 FTT, worth $584 million at the time, was transferred from a wallet to Binance's exchange on Saturday. While CoinGecko stated that the amount is equivalent to 17% of the circulating supply of FTT.

CZ has confirmed that the amount was shifted funds, which are part of Binance's move to liquidate its position in FTT.

Image source: Shutterstock