C

hangpeng Zhao stated that their decision was based on the latest revelations. According to reports, FTX's sister firm Alameda had assets worth $14.6 billion.

The trading firm's highest asset was disclosed to be $3.66 billion in locked FTT, with $2.16 billion in FTT collateral coming in third. This means that FTT accounts for more than $5 billion of the company's assets, expressing concern about the firm's solvency.

Binance will sell $2.1 billion in FTT

CZ clarified that the FTT tokens that Binance is looking to sell are part of the $2.1 billion comparable in FTT and BUSD tokens that the company received after departing FTX equity last year.

Given the current market conditions and limited liquidity, he believes it will take months for the exchange to offload the tokens completely.

FTT has dropped 7.6% in the last 24 hours due to the news and is now trading at $22.62. The token is 73% lower than its all-time high of $84.18.

Binance Transfers Over $500 Million in FTT Tokens

On Saturday, 22,999,999 FTT worth $584 million were relocated from a wallet to Binance, according to Etherscan data. This represents approximately 17% of FTT's total circulating supply.

Meanwhile, CZ stated that their action was not intended to harm FTX. According to him, the sales would indeed be made in a way that would have the least amount of market impact.

Alameda Makes a Purchase Offer on Holdings

Caroline Ellison, CEO of Alameda Research, has stated that if he wants to reduce market impact, Alameda will gladly buy all of the FTT from CZ today at a price of $22.

In other tweets, she stated that the most recent balance sheet information does not provide a complete picture of Alameda's assets.

She said that the particular balance sheet being circulated is only for a subset of its large corporations. The trading company has more than $10 billion in assets that are not reflected.

What are your thoughts on Binance's reveal of their FTX FTT token liquidation intentions? Drop your comments by sharing this article on social media.

Posted 
Nov 7, 2022
 in 
Crypto News
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