Binance is liquidating all FTT holdings
Binance is liquidating its remaining FTT holdings, according to the crypto exchange’s CEO Changpeng “CZ“.
However, CZ has not clarified the reason behind the liquidation of FTT – the original token of rival FTX exchange, other than saying only “recent revelations that have come to light.”
“As part of Binance’s exit from FTX shares last year, Binance received approximately 2.1 billion USD equivalents in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate the remaining FTT on our books. 1/4”
CZ also took to Twitter to publicly announce that the liquidation is not a tactic to take a shot at FTX.
In response to the latest move by CZ, Alameda’s CEO tweeted that the trading firm’s financial condition is more robust. She also offered a buyback offer by replying to the Binance CEO’s post.
“@cz_binance if you want to minimize the market impact on your FTT sale, Alameda is happy to buy everything from you today for $22!”
The move from Binance has come after weeks of criticism of FTX founder and CEO Sam Bankman-Fried for his regulatory proposals.
Bankman-Fried published a proposal on October 19, which has become controversial. It is a detailed plan for regulatory oversight and industry standards in the digital asset space.
According to critics, Bankman-Fried’s proposal to set industry standards threatens DeFi’s core ideology and threatens the world’s leading DeFi teams and platforms. However, Bankman-Fried has taken a step back to reconsider its stance on DeFi regulation.
The funds held by Binance were received from FTX last year as part of the exit of an equity position in the company, which it held since 2019.
FTX bought out Binance’s stake in the company with a $21 billion mix of FTT and the stablecoin native to Binance’s exchange, BUSD, according to CZ.
He added that the liquidation would take a few months due to the ongoing negative market sentiment and limited liquidity. Furthermore, the company aims to manage liquidity in a way that reduces the impact on the market.
Nevertheless, FTT has fallen 9.5% in the last day to $23.03 from $25.55, according to CoinGecko.
Data from Etherscan showed that 22,999,999 FTT, worth $584 million at the time, were transferred from a wallet to Binance’s exchange on Saturday. While CoinGecko stated that the amount is equivalent to 17% of the circulating supply of FTT.
CZ has confirmed that the amount was transferred funds, which is part of Binance’s move to liquidate its position in FTT.
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