FTX Token Plunges Another 20% amid Sell-off, Binance Distances Itself

UTC by Bhushan Akolkar · 3 min read
FTX Token Plunges Another 20% amid Sell-off, Binance Distances Itself
Photo: Unsplash

FTX token value plunged another 20% in the last 24 hours. Nearly $1 billion in FTT market value has eroded since the Binance episode.

Amid all the drama surrounding Binance’s withdrawal of FTX tokens, the native currency of crypto exchange FTX has come under further selling pressure. In the last 24 hours, the FTX token (FTT) price has tanked by another 20% slipping under $20.

FTX Token Price

As of press time, FTX is trading 20% down at a price of $18.25 with a market cap of $2.4 billion. Over the last four days, nearly $1 billion in the FTX token market value has been eroded.

Although the plunge in the FTX Token price has been triggered by the news of Binance selling their FTX tokens, they denied that they are not behind Monday’s sell-off. Earlier today, Chinese crypto journalist Colin Wu reported:

“FTT suddenly plunged 14% in 1 hour, and SOL fell 14% in 24 hours. 1.9 million FTT ($44 million) was transferred from the Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not Binance selling”.

Binance CEO Changpeng Zhao has said that it would take them months to unload their FTT token holding considering market conditions and liquidity. The recent development comes amid some insolvency speculations related to FTX and Alameda. Both these companies are owned by crypto billionaire Sam Bankman-Fried.

CZ said that “Liquidating our FTT is just post-exit risk management, learning from LUNA. We are not against anyone”. The Binance chief has also denied rumors that recent measures have been taken to gain a competitive edge. Over the last year, the growth of FTX has been parabolic. The company has also been very active amid major acquisitions this year.

SBF Denies Any Wrongdoing

As speculations have grown over the illiquidity of FTX tokens with Alameda Research, CEO Sam Bankman-Fried (SBF) has come clean on the matter. He has also asked Binance chief CZ to work together for the crypto ecosystem.

SBF said that the exchange is capable enough to handle all liquidation eliminating concerns over their balance sheet. In a Twitter thread earlier today, SBF wrote:

“A competitor is trying to go after us with false rumors. FTX is fine. Assets are fine. FTX has enough to cover all client holdings. We don’t invest client assets (even in treasuries). We have been processing all withdrawals, and will continue to be. It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today. I’d love it, @cz_binance, if we could work together for the ecosystem”.

Star Xu, founder of crypto exchange OKX has also asked CZ and SBF to work out a solution together. He also appealed to CZ to stop the sale of NFTs.

The recent FTT episode has also impacted other altcoins on FTX. As per on-chain data, nearly 90% of the Ethereum has been dumped from the FTX wallet just in the last two days.

Altcoin News, Blockchain News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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