Binance to liquidate its entire FTX Token holdings when ‘recent revelations’

Binance CEO Changpeng Zhao cited “recent revelations” as the reason for the liquidation, noting the sale of its tokens may take months to complete thanks to the scale of its position.

The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, same his company can liquidate the whole thing of its position in FTX Token FTT tickers down $22.46, the native token of competitory exchange FTX.

In a Nov. 6 tweet, Zhao said the choice was created when “recent revelations have come to light.”

In a later tweet, CZ explained the FTT liquidation was “just post-exit risk management,” pertaining to lessons learned from the autumn of Terra’s Luna Classic (LUNC) and the way it compact market players.

He additionally added “we won’t support those that lobby against different business players behind their backs.”

Liquidating our FTT is simply post-exit risk management, learning from Luna. we tend to give support before, however we can’t faux to create love when divorce. we tend to not be against anyone. However, we can’t support those that lobby against different business players behind their backs. Onwards.

— CZ Binance (@cz_binance) November 6, 2022

Cointelegraph understands that Binance’s call to liquidate the token is thanks to reports encompassing a recently leaked record from SAM Bankman-Fried-founded Alameda analysis, that alleges billions of dollars value of Alameda’s assets area unit affianced in FTX’s token.

Alameda analysis chief executive officer King of England Ellison, in a Nov. 6 tweet, however, sam the record wasn’t reflective of truth story, noting that the sheet in question is barely for “a set of our company entities” and different assets value over $10 billion “aren’t mirrored there.”

– the Balance Sheet breaks out a number of of our biggest long positions; we tend to clearly have hedges that aren’t listed

– given the alteration within the crypto credit area this year we’ve came most of our loans by currently

— King of England (@carolinecapital) November 6, 2022

Bankman-Fried backed Ellison’s claim in an exceedingly tweet, speech a “bunch of unwarranted rumors are current.”

Cointelegraph contacted Binance for clarification concerning the explanations behind the liquidation, an indication of the fact that the corporation has no more updates “at now.”

Zhao didn’t state what quantity FTT Binance would sell, however disclosed the exchange control around $2.1 billion dollars equivalent in Binance USD (BUSD) — the exchange’s stablecoin — and FTT thanks to its exit from FTX equity last year.

He additional Binance would try and sell the tokens in an exceedingly means that “minimizes market impact” stating he expects the token sales to require “a few months to complete.”

On-chain analysis showed nearly twenty three million FTT, worth around $584 million at the time of writing, transferred from Associate in Nursing unknown case to Binance, that Zhao confirmed as a part of the exchange’s token offloading.

Yes, this is often a part of it. https://t.co/TnMSqRTutr

— CZ Binance (@cz_binance) November 6, 2022

The price of FTT whirled on the series of announcements and, at intervals, a two-hour amount on Nov. 6, spiked the worth from around $23 to $24.50, followed by a crash of over September 11 to $22.28. FTT is down over 4.3% over the last twenty four hours of commerce around $22.50.

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