Binance will liquidate its FTT tokens after ‘recent revelations’

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CEO Changpeng Zhao—aka CZ—took to Twitter to recently reveal that his crypto exchange was liquidating its FTT holdings, the native token of exchange FTX. Via a thread, the CEO of the largest crypto exchange revealed, that as part of Binance’s exit from FTX equity last year, it received roughly $2.1 billion equivalent in cash [BUSD and FTT]. He attributed the the latest decision to sell to “recent revelations.”

“Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.”

The executive further pointed out that his entity learned its lesson on “post-exit risk management” well from LUNA. He stressed that the exchange “won’t pretend to make love after divorce.” Zhao, however, clarified that Binance was “not against” anyone, but at the same time, “won’t support people who lobby against other industry players behind their backs.”

Whale Alert already tracked down around 22.99 million FTT tokens worth roughly $584.8 million transferred to the exchange reserve. Tagging that particular tweet, CZ confirmed that the said transaction was a “part of it.”

On Twitter, the Binance executive stated that the tokens will be liquidated “in a way that minimizes market impact.” He added,

“Due to market conditions and limited liquidity, we expect this will take a few months to complete.”

Further elaborating on how Binance was a long-term HODLer and always encouraged collaboration between industry players, he said:

Opining on the Binance CEO’s tweet about the FTT liquidation, FTX CEO Sam Bankman-Fried  said,

“I was going to write a different thread, but I took a deep breath and reminded myself of something we’d all do well to remember: that we’re all in this together, and I wish the best to ‘everyone’ driving the industry forward.”

He added,

“Because I respect the hell out of what y’all have done to build the industry as we see it today, whether or not they reciprocate, and whether or not we use the same methods. Including CZ. Anyway—as always—it’s time to build. Make love (and blockchain), not war.”

The Alameda tangent

FTX’s sister firm Alameda Research’s CEO—Caroline Ellison—on the other hand, offered to buy his firm’s FTT token HODLings for $22 each. The CEO also tweeted that her trading firm’s financial condition was stronger than what was reflected by the balance sheet.

As reported recently, Alameda Research allegedly has most of its assets in illiquid altcoins. Its balance sheet is mostly made up of FTT. Alameda’s assets amounted to $14.6 billion, of which $3.66 billion was made up of unlocked FTT. Alongside, $2.16 billion in FTT collateral was the third-largest entry on the assets side of the accounting ledger.

Also Read: FTX: Alameda Research has most of its Assets in Illiquid Altcoins

Ellison, however, clarified by tweeting:

FTX’s native token was trading in red on the daily. Post noting a 5.5% dip over the past 24 hours, the asset was priced at $22.33 at press time.

Source: CMC


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