FTX CEO Sam Bankman-Fried has finally responded to Binance dumping its FTT (FTX) holdings. SBF has chosen the peaceful route in his war with Binance CEO Changpeng “CZ” Zhou. Instead of addressing the specific allegations on Alameda Research or Binance dumping FTT, he asked for cooperation between big industry players.
Why Is Binance Dumping FTX Tokens
Crypto billionaire Sam Bankman-Fried has two major crypto companies. One is the giant crypto exchange FTX and the other is the trading firm Alameda Research. According to the documents reviewed by CoinDesk, Alameda Research has significant exposure to the FTX tokens, FTT. On June 30th, Alameda held assets amounting to $14.6 billion.
Out of the $14.6 billion, unlocked FTT tokens accounted for the single largest $3.66 billion. This highlights an unusually high exposure of Alameda on FTX. It also raises questions about its financial viability. Caroline Ellison, the CEO of Alameda, has downplayed the questions about the company’s financial stability. She claims that the financial document reviewed by CoinDesk is a subset of the company’s assets. She reveals that Alameda has another $10 billion worth of assets that are not listed.
FTT tokens plummeted due to the negative sentiment around the two companies. It fell by 9.63% in the last 24 hours and over 12% in the last 7 days. It is currently trading at $22.37.
Binance CEO CZ revealed that he will liquidate the exchange’s FTT holdings. As CoinGape previously reported, $584 million worth of FTT has been transferred to Binance exchange for sale.
Will The CZ-SBF War Hurt Crypto
The crypto community is bracing for an all-out war between the two crypto giants: FTX and Binance. However, their respective CEOs are trying to downplay the conflict. CZ reveals that he will liquidate FTT gradually to reduce any market impact. Moreover, he stresses that this is not an attempt to hurt FTX.
Similarly, SBF claims that he has respect for CZ’s contribution to the crypto community. He states that key market leaders should build blockchain and not war.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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