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Thursday, February 9, 2023

Binance To Liquidate The Complete FTX Token Holdings After The Revelation

The liquidation was caused by “recent developments,” according to Binance CEO Zhao, who also noted that given the size of the holding, the selling of its assets might take several months to Finish.

Changpeng “CZ” Zhao, the CEO of crypto trading Binance, announced that his company would liquidate all of its holdings in FTX Asset, the native coin of rival exchange FTX.

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Zhao stated that the choice was taken following “recent disclosures which have come to light” in a post from November 6.

In a twitter post, CZ clarified that the FTT sale was “simply post-exit management of risk,” alluding to the knowledge gained from Terra’s LUNC demise and the effects it had on market participants.

Binance Liquidating FTX Token Holdings:

In response to Ellison’s assertion, Bankman-Fried tweeted that “a variety of baseless rumours have been spreading.”

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When Cointelegraph approached Binance to inquire about the circumstances surrounding the liquidation, a spokesman stated that the business “at this time” seems to have no new information.

Zhao didn’t say how very much FTT Binance will sell, although he did say that owing to its departure from FTX equities the year before last, the exchange had roughly $2.1 bn in Binance and FTT USD (BUSD), the cryptocurrency of the exchange.

He continued by saying that Binance will work to “minimize impact on the market” and that he anticipated the asset sales to require “a few months to finish.”

Zhao acknowledged that the movement of around 23 mn FTT, or about $584 mn at the moment of typing, from an unidentified wallet to Binance was a part of the exchange’s token unloading. This information was revealed through on-chain analytics.

The cost of FTT fluctuated due to the news, rising from about $23 to $24.50 in a period of two hours on November 6 before dropping more than 9% to $22.28. FTT is currently trading at $22.50, dropping more than 4.3 percent over the last day.

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