CZ Confirms Transfer Of FTT Tokens Worth $584 Million To Binance

As per his tweet, Binance CEO has confirmed a switch of practically $584 Million value of FTT token to Binance as a part of introduced liquidation course of. As reported by CoinGape, CZ introduced immediately that Binance will liquidate their FTT token holding in subsequent few months.

What’s the CZ Vs SBF Controversy?

As per reviews, Alameda analysis a buying and selling firm owned by Sam Bankman Fried (SBF) was discovered to be holding greater than $3 Billion value of FTX alternate unlocked (FTT) token on their stability sheet. FTX alternate is the issuer of FTT token and can be owned by SBF.

Because of this Alameda Analysis has billions of {dollars} in FTT token issued by Sam’s different enterprise FTX alternate. Alameda Analysis has allegedly used the FTT tokens on their books as collateral to borrow USD stables.

It’s laborious to pin level precise cause for Binance’s motion in opposition to SBF and FTT token. One cause could also be that Binance considers holding FTT token on their books as legal responsibility. This liquidation of FTT token holding could also be an effort to scale back the publicity and derisk.

Many crypto lovers are additionally arguing that what’s stopping Binance from promoting their FTT holding on to Sam Bankman-Fried and FTX as an alternative of dumping in open market.

Crypto influencer, Ran Neuner accused Binance CEO for intentionally dumping FTT token. He identified that CZ has already bought his stake final yr and he’s promoting now solely to wreck the over-leveraged Alameda analysis. CZ responded to his tweet denying such rumors.

How Low Can FTT Value Slide?

The incident is certainly impacting FTT token value and it has already slumped by greater than 10% in final 24 hrs. $21-$22 is a robust assist area. A breakdown of $21 assist could end in a really sharp decline in value printing all time lows for the token value.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency house for two years now. Beforehand he co-founded Govt. of India supported startup InThinks and is at present Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has revealed greater than 100 articles on cryptocurrency and blockchain and has assisted a lot of ICO’s of their success. He has co-designed blockchain improvement industrial coaching and has hosted many interviews in previous. Observe him on Twitter at @sharmasunil8114 and attain out to him at sunil (at) coingape.com

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