A recent dispute between two of the major cryptocurrency exchanges has caused a serious impact on FTX’s token, FTT.
This week, the CEO of Binance, the largest cryptocurrency exchange in the world, Zhao Changpeng, stated on Twitter that he had decided to sell all of the competitor FTX’s FTT tokens that remained in his possession.
Down Goes FTX
According to data from CryptoQuant, stablecoin reserves on FTX decreased to US$ 114 million on Friday from US$ 394 million three days earlier. Withdrawals from ether, the second-largest cryptocurrency, increased sharply on the exchange the same day.
“Based on the on-chain flows, it looks like FTX is experiencing a high volume of withdrawals,” Hayden Hughes, CEO of Alpha Impact told Bloomberg. “So far it looks that they’ve been able to meet those.”
Zhao said on Twitter on Tuesday that Binance has decided to sell all of its FTT tokens, which at the time were valued at around US$ 529 million.
The announcement caused the price of the FTT to fall and caused unease in larger cryptocurrency markets, with Solana, a token backed by FTX, falling by 7.1% as a result.
When Binance exited an FTX investment last year, it received US$ 2,1 billion in Binance USD and FTT, the remainder of which was decided to be sold. Zhao cited an enigmatic “reason revelations as the motivation to completely liquidate Binance’s FTTs.
Zhao did not specify which “revelaçes” he was referring to. A Binance spokesperson declined to comment.
Bankman-Fried did not respond immediately to comments while tweeting that he respects what those who built the industry have done.
“Because I respect the hell out of what y’all have done to build the industry as we see it today,” Bankman-Fried wrote on Twitter. “Whether or not they reciprocate, and whether or not we use the same methods -Including CZ.”
What is FTT?
FTT is a coin that is utilized on FTX, a global crypto derivatives market. FTT sometimes referred to as the “backbone” of the FTX exchange, offers its holders several advantages.
Sometimes the phrases “FTX token” and “FTT” are used interchangeably. You gain cheaper trading costs and access to a plethora of bonuses on the FTX market if you have FTX tokens. You may also use your tokens as collateral in futures trading.