Sam Bankman-Fried's Response To The CZ Plan, SBF: FTX Is Fine, Assets Are Fine

FTX and Alameda Research founder Sam Bankman-Fried. (Photo; Doc. Coincu)

JAKARTA The founder of the FTX crypto exchange and digital asset trading service company Alameda Research, Sam Bankman-Fried (SBF) immediately responded to a statement by Binance boss Changpeng Zhao who plans to sell all the original FTX tokens, namely FTT.

Previously, Changpeng Zhao announced that he would sell all the FTT tokens owned by Binance. The decision came after several days Alameda Research sold stablecoins worth IDR 4.5 trillion through its partner crypto exchange, FTX.

Commenting on each other's sell-offs, Sam Bankman-Fried tweeted that FTX is fine. Assets are fine, with more than $1 billion in excess cash amid rumors of a liquidity crisis.

FTX CEO Sam Bankman-Fried has taken to Twitter to call on "competitioners" to "try to chase us" and reassure the industry that despite efforts, "FTX is fine. Assets are fine."

FTX has enough funds to cover all client holdings. We don't invest clients' assets (even in treasury). We have processed all withdrawals, and will continue," wrote SBF, November 7, 2022.

The threat of tweets appears to be a response to rumors and speculation of liquidity issues at FTX and Alameda Research. The rumors may have played a role in Binance's recent decision to liquidate $500 million worth of FTT tokens over the weekend.

The SBF further expands by claiming that FTX "has enough (funds) to cover up all client holdings" and will continue to process all withdrawals. He closed his thread with the following statement, implying that the "competition" mentioned above could be Binance.

"I would be happy, @cz_binance, if we could work together for the ecosystem," added SBF, @SBF_FTX.

CZ has been posting over the weekend that he plans to liquidate Binance's FTT tokens as "wahyu recently revealed" but wants to ensure a "market impact" is minimal.

COPe, a content creator at The Block, responded to the SBF with a meme image showing the house on fire along with the caption, "FTX is fine," as a major example of the community's view of SBF's statement.

Interestingly, most conversations surrounding liquidity issues focused on Alameda Research rather than FTX. SBF's recent statement did not refer to Alameda, instead focusing on ensuring the crypto community received a message that "FTX is fine."

The question of Alameda's solvability status may continue until further evidence is presented to show that the company has sufficient assets to support its loans if the FTT token continues to fall in price.

The value of the FTT tokens continued to fall into the US market which opened on November 7, reaching 22 dollars in the early hours of the morning. The token price recovered on November 6 after Ellison's bullish statement that Alameda could purchase all Binance's FTT tokens at a price of 22 dollars. However, any recovery has since been thwarted as price movements continue to strive to maintain a value of 22 US dollars per token.