The well known altcoin in the focal point of the conversations lost more than $ 500 million in esteem in no less than 60 minutes, losing in excess of 20% with a solid selling pressure. Is Binance behind the decrease in Altcoin?
FTX Token (FTT), the stock trade badge of the US-based monster cryptographic money trade FTX, has lost 20% in esteem as of now and has fallen underneath $ 20. At the hour of composing, FTT is exchanging at $2.2, down 28.80 percent from the $15.92 it kept as of now with a market capitalization of $15.92 billion. The sharp decrease in the Altcoin came a couple of days after Binance reported that it would sell its FTT tokens, which made the eyes be gone to the digital money trade.
FTX Token Is Liquefying Quickly
The drop made the FTT token lose more than $500 million in esteem soon. Moreover, the market capitalization of the FTX Token has liquefied more than $1 billion over the most recent 4 days. Chinese columnist Colin Wu brought up that there was an enormous exchange of FTX Token (FTT) from Beginning OTC Work area to FTX and expressed that this move could be the wellspring of the decrease in altcoin. He additionally added that Binance isn’t behind the new decrease in the FTT, saying:
The FTT fell sharply by 1 percent in 14 hours, and the LEFT fell by 14 percent in 24 hours. 12 hours ago, 1.9 million FTT ($ 44 million) was transferred from Genesis OTC Desk to FTX, but CZ said that this is not a sale owned by Binance.
Binance announced that it had decided to sell all of the FTX Tokens it held at the end of last week. This development comes after the emergence of the problematic outlook surrounding the balance sheet of FTX and sister company Alameda Research. Binance has reportedly transferred half a billion dollars worth of FTT tokens to its platform. After the world’s largest cryptocurrency exchange took action, market experts began to approach FTX and its token with skepticism, suggesting that a new Terra ecosystem-like collapse could occur.
Binance Clarified the FTX Token Event
According to some, Binance’s announcement that it will sell the FTT tokens in its possession is part of its competition with FTX. However, Binance CEO Changpeng Zhao contradicted all these claims in a recent statement. Zhao also mentioned the transfer of FTT tokens to Binance, noting that this is part of the liquidation process. However, Binance plans to complete the sale of its FTT tokens in the next few months.
Binance CEO stated that they will try to minimize the market impact of the sale of these FTT tokens, and that they expect it to take several months to complete due to market conditions and limited liquidity. Breaking his silence after all these statements for a while, FTX founder and CEO Sam Bankman-Fried countered the claims that there are problems in their balance sheets by stating that the company’s balance sheets are without problems and financial audits have been carried out.