FTT has lost 13% of its value as the conflict between FTX and Binance continues. The digital asset of the FTX crypto exchange has been affected by Binance announcing that it was liquidating its holdings of FTT digital currencies. This situation has created a larger interest in traders to hedge against a further decline in this token using FTT futures.
FTT Risk Continues as Losses Reach 13% in 7 Days
Over the last few days, over 50 million FTT tokens have been sold on multiple crypto exchanges as reported by Glassnode. This comes after the most recent announcement made by Changpeng Zhao, the CEO of Binance, when he said that they are exiting FTX equity.
Changpeng Zhao announced on Twitter:
“As part of Binance’s exit from FTX equity last year, Binance receive roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books.”
This was just the beginning of a threat in which he explains why they decided to do so and how they planned to conduct the sale of FTX, which is expected to take a few months to complete.
This sale of FTT has affected its price. According to CoinGecko, FTT fell by 13% in the last 7 days. Indeed, due to the current situation that the virtual currency is experiencing, FTT was one of the worst-performing virtual currencies in the last week. Hence, it would be very important for the team behind FTX to stabilize the price of the cryptocurrency.
The main issue is related to Alameda’s balance sheet. Analysts believe that there have been many questions about Alameda’s balance sheet and Binance announced its decision to liquidate its FTT digital currencies. This was the only necessary thing for other investors in FTT and larger FTT holders to add more selling pressure to the market.
The most recent price action linked to FTT has also affected other virtual currencies. Indeed, the market lost 2% of its price in the last 24 hours with Solana (SOL), Dogecoin (DOGE), and Bitcoin (BTC) leading in terms of losses in the top 10.
But there were also many gainers during the same period of time that seems not to have been affected by the issue that touched Binance and FTT. Polygon (MATIC) is a clear example of a top 20 digital currency that surged by 8.7% and registered the largest gains among cryptocurrencies in the top 100.
Polkadot (DOT) has also moved higher by 4% in the last 24 hours alongside OKB (OKB), which registered a 2.5% price increase as well. It will be very important to see what will happen with FTX and the FTT digital currency exchange. According to the CEO of the FTX exchange, FTT is fine and all assets are fine, including client holdings.
He has also finally mentioned that he would love to work side by side with Changpeng Zhao and improve the ecosystem.
1) A competitor is trying to go after us with false rumors.
FTX is fine. Assets are fine.
— SBF (@SBF_FTX) November 7, 2022