Binance CEO and cryptocurrency industry titan Zhao Changpeng said on Twitter that he would be liquidating his remaining FTT tokens.
Binance formerly had a minority ownership in Binance’s chief competitor, FTX, which billionaire Sam Bankman-Fried owns. Binance acquired $2.1 billion in Binance USD and FTT coins when it opted to get out of that venture last year, and the company has decided to sell the rest of those currencies, CEO Changpeng Zhao stated, citing “new findings that came to light.”
An anonymous source close to Binance has said that the exchange controls over 23 million FTX tokens, with a market value of approximately $529 million at present rates. Meanwhile, the CEO of Alameda stated that the trading firm’s financial health is better than what was reported by CoinDesk. She replied to the Binance CEO on Twitter by offering to purchase all of the company’s FTT tokens for $22.
@cz_binance if you're looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!
— Caroline (@carolinecapital) November 6, 2022
An alert service called “Whale Alert”, which monitors the cryptocurrency market for unusual activity reported on Saturday that 23 million tokens had been transferred to Binance, prompting fears of a market dump.
A panic ensued among FTT owners, who dumped their shares out of fear that FTX was going bankrupt due to the news. Following Saturday’s announcement, FTT fell by almost 16% in less than 48 hours. Binance is FTX’s top rival, according to statistics from CoinMarketCap; however, to outside observers, it may seem like Binance is seeking to gain an advantage over FTX regardless of its financial stability.