FTT Drops 11% In 24 Hours As Binance Dump FTX
In the past day, FTT, the native token of FTX, one of the biggest cryptocurrency exchanges, has been under pressure and fallen more than 10%.
The announcement that 23 million tokens, or $580 million, had been transferred to the Binance market may be the cause of the significant sell-off of FTT by investors. Rumors in the cryptocurrency community suggest that this volume represents Binance’s unlocking investment in FTT.
The transfer of the $500 million FTT bag to Binance—possibly by the exchange itself—is more of a result than a cause. It all started with a recent inquiry into the financial holdings of FTX and its associated trading company Alameda Research.
Alameda Research insolvent? – FTT
Without getting into the specifics of the study, it demonstrates the weakness of Alameda’s balance sheet, which states that native token of FTX is the company’s largest asset and is used to borrow money from creditors. The CEO of Binance, Changpeng Zhao, also tweeted his support for the probe.
Colin Wu, a well-known crypto journalist, also asserts that the assertion that Binance will dump FTT may not be true. The journalist speculates that after part of the exchange’s investments were unlocked, it may have simply shifted all of its tokens to a single address.
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