In a recent tweet Changpeng Zhao, CEO of Binance, announced that his company has decided to liquidate any FTT remaining on their books.
He also added that this liquidation will be completed in a few months because they do not want it to cause too negative consequences for the cryptocurrency market.
23 million FTT tokens (roughly $ 585 million) have been moved to the Binance wallet.
At the heart of this situation is Alameda Research, a trading company founded in 2017 by Sam Bankman-Fried (also founder of FTX). Rumors have been circulating for days that Alameda could be insolvent. According to Coindesk, Alameda had $14.6 billion of assets as of June 30 and much of it is the FTT token issued by FTX, not a fiat currency or another crypto.
On Twitter Sam Bankman-Fried reassured his customers, saying that FTX is fine and that they are false rumors spread by a competitor.
CZ tweeted this afternoon that FTX has asked for Binance’s help due to a severe liquidity crisis. Binance could acquire 100% FTX.
Do you see any similarities with Celsius, which collapsed after the vicissitudes of Three Arrows Capital? But above all, what will happen to the cryptocurrency market?
A winner is a dreamer who never gives up.
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