Binance Is Dumping All Its FTX (FTT) Token Holdings ‘Due To Recent Revelations That Came To Light’, Says CEO Changpeng Zhao confirmed. “With respect to any speculation about whether this is a move against a competitor, it is not,” he added. “Our industry is in its infancy and every time a project fails publicly it hurts all users and all platforms.”
Binance liquidating all FTX tokens on its books
Global cryptocurrency exchange Binance CEO Changpeng Zhao (CZ) announced via Twitter on Sunday that his exchange is liquidating all FTX tokens (FTT) from its books.
The executive explained that Binance received $2.1 billion in BUSD (Binance stablecoin) and FTT for the FTX capital exit last year. Binance was an early investor in FTX. “Due to the recent revelations that have come to light, we have decided to liquidate any remaining FTTs on our books,” Zhao wrote.
In follow-up tweets, the head of Binance added: “We will try to do this in a way that minimizes the impact on the market. Due to market conditions and limited liquidity, we expect this to take a few months to complete.” He further said. “We usually have long-term tokens. And we’ve held this token for so long.”
CZ also detailed:
Liquidating our FTT is just post-exit risk management, learning from LUNA. We’ve been supportive before, but we won’t pretend to make love after the divorce. We are not against anyone. But we will not support people lobbying against other industry players behind their backs. ahead
Noting that “Binance always encourages collaboration between industry players,” the CEO stated that the sale is not “a move against a competitor,” as some have speculated. He continued: “Our industry is in its infancy and every time a project fails publicly it hurts all users and all platforms.”
Shortly after its announcement, CZ admitted that the 22,999,999 FTT transferred to Binance on November 5 was part of the FTX token exit movement from its exchange.
Answer by Sam Bankman-Fried
Commenting on Binance CEO’s tweet about FTT, FTX CEO Sam Bankman-Fried he wrote: “I was going to write a different thread, but I took a deep breath and remembered something we’d all do well to remember: that we’re all in this together, and I wish the best to ‘everyone’ driving the industry forward.” He continued:
Because I respect the hell out of what you’ve done to build the industry as we see it today, whether or not we match and use the same methods or not. Including CZ.
FTX released a paper titled “Possible Digital Asset Industry Standards” on October 19th that received a lot of backlash from the crypto industry. Bankman-Fried, who is a mega-donor for the Democratic Party, has come under fire for his controversial comments on the decentralized finance protocol (defi). Meanwhile, CZ is a big supporter of defi, having previously stated, “Binance is investing heavily in defi.”
In addition, some people believe that the sale of FTT could also be related to the financial health of Alameda Research, a leading trading firm founded by Bankman-Fried. On Friday, Dirty Bubble Media posted one article outlining the reasons why Alameda Research’s finances “appear to rest on the same scheme that destroyed the Celsius network.” The article cites a leaked balance sheet.
What do you think about Binance offloading all of its holdings of FTX tokens? Let us know in the comments section below.
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