Binance Dump Token FTT, Reply To FTX Selling Action?

Binance will sell FTT tokens. (Photo; Doc. Cryptomics)

JAKARTA The world's largest crypto exchange company by trading volume, Binance, plans to sell all the FTX (FTT) tokens owned by the company. The outbreak of the plan sparked speculation of Binance's rivalry with FTX.

Binance CEO Changpeng Zhao denied the speculation. "Regarding speculation whether this is a move against competitors, it's not. Our (crypto) industry is in its early days and whenever a project fails publicly, it harms every user and every platform," said CZ.

This information was conveyed by CZ in his Twitter post on Sunday 6 November. He announced that his company will liquidate all of its FTT tokens.

Furthermore, Zhao explained that Binance had received USD 2.1 billion in the Binance USD (BUSD) stablecoin and FTT tokens from FTX equity last year. For information, Binance is the initial investor in the FTX crypto exchange.

"Due to the recent disclosures revealed, we have decided to liquidate the remaining FTT in our book," Zhao wrote, reported by Bitcoin.com News.

However, Binance plans to minimize the impact of the massive sale on the crypto market. Zhao explained that the sales action carried out by his party would last for several months.

"We will try to do so in a way that minimizes market impacts. Due to market conditions and limited liquidity, we estimate it will take several months to complete," said Binance's boss.

Furthermore, CZ admits that it usually holds tokens for a long time. FTT is one of them. Binance CEO added that the action was intended as part of Binance's risk management.

"Releasing our FTT is just post-out risk management, learning from LUNA. We gave our previous support, but we won't pretend to make love after the divorce. We're not against anyone. But we're not going to support the people lobbying other industry players behind them. Keep going, "said CZ.

He emphasized that the move was not against competitors of his crypto exchange company. Furthermore, CZ also retweeted a post from Whale Alert announcing that more than 22 million FTT tokens were transferred to Binance.

FTX Founder Sam Bankman-Fried Comment

The founder of the leading crypto exchange in the United States FTX, Sam Bankman-Fried (SBF) shared his latest comments regarding the CZ action. SBF explained, "I will write a different thread, but I take a deep breath and remind myself of something that we all should remember: that we are all in this together, and I wish the best for'everyone' to push this industry forward."

"Because I have great respect for what you have done to build an industry as we see it today, regardless of whether they reply or not, and whether we use the same method or not. Including CZ," added SBF.

Apart from all that, some believe that the plan to sell FTT tokens to be carried out by Binance has something to do with other companies that were also founded by Sam Bankman-Fried, namely Alameda Research.

Crypto trading service company Alameda Research, founded by Sam Bankman-Fried (SBF), is reported to have sold IDR 4.5 trillion crypto stablecoins to crypto exchanges recently. The sale took place between October 31 and November 2, according to a CryptoSlate report.

The Market Maker sold USD 168 million US dollars (approximately IDR 2.6 trillion) to a relative company, the crypto exchange FTX. Alameda Research also sold USDP worth USD 66 million (equivalent to IDR 1 trillion) to the Binance crypto exchange. It didn't stop there, the company also sold USDC worth USD 50 million (approximately IDR 784 billion) to Circle.

A massive outflow occurred before the Federal Open Market Committee (FOMC) meeting. The Federal Reserve is expected to raise interest rates by 0.75% for the fourth time.

Meanwhile, according to the Dirty Bubble Media report, it describes the reasons why Alameda Research's finances "seem to rely on the same scheme that destroys the Celsius Network." The article cites a leaked balance sheet.