Binance Releases All Its Holdings of FTX Tokens (FTT) “In light of recent revelations that have come to light,” CEO Changpeng Zhao confirmed. “As for 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 every user and every platform.”
Binance is 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 (FTT) tokens on its books.
The executive explained that Binance raised $2.1 billion in BUSD (Binance stablecoin) and FTT last year from the exit of FTX equity. Binance was the first investor in FTX. “In light of the recent revelations that have come to light, we have decided to eliminate any remaining FTT on our books,” Zhao wrote.
In subsequent tweets, the head of Binance added: “We will try to do this in a way that minimizes the impact on the market. Given market conditions and limited liquidity, we expect this to take several months.” He further said. “We usually hold tokens for the long term. And we’ve held onto that token for so long.”
CZ also in detail:
Eliminating our FTT is just post-exit risk management learning from LUNA. We were supportive before, but we won’t pretend to love each other after the divorce. We are not against anyone. But we will not support people lobbying against other players in the industry behind their backs. Further.
Noting that “Binance has always encouraged collaboration between players in the industry,” the CEO argued that the sale was not a “move against a competitor” as some had speculated. He continued: “Our industry is in its infancy, and every time a project fails publicly, it hurts every user and every platform.”
Soon after his announcement, CZ admitted that the 22,999,999 FTT transferred to Binance on November 5th was part of the FTX token move on his 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 post another thread, but I took a deep breath and reminded myself of something we’d all do well to remember: that we’re all in this together and I wish ‘everyone’ the best driving the industry forward.” He continued:
Because I respect what you all have done to build the industry as we see it today, regardless of whether or not they are reciprocated and whether we use the same methods or not. Including CZ.
On October 19, FTX published a document titled “Possible Digital Asset Industry Standards” that was met with a lot of opposition from the crypto industry. Bankman-Fried, who is a mega-donor to the Democratic Party, has come under fire for his controversial comments on the decentralized finance (defi) protocol. Meanwhile, CZ is a major 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, the main trading company founded by Bankman-Fried. On Friday, Dirty Bubble Media published an article outlines the reasons why Alameda Research’s finances appear to rest on the same scheme that brought down the Celsius Network. The article refers to the leaked balance sheet.
What do you think about Binance releasing all its FTX tokens? Let us know in the comments section below.
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