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

As per his tweet, Binance CEO has confirmed a transfer of nearly $584 Million worth of FTT token to Binance as part of announced liquidation process. As reported by CoinGape, CZ announced today that Binance will liquidate their FTT token holding in next few months.

What’s the CZ Vs SBF Controversy?

As per reports, Alameda research a trading company owned by Sam Bankman Fried (SBF) was found to be holding more than $3 Billion worth of FTX exchange unlocked (FTT) token on their balance sheet. FTX exchange is the issuer of FTT token and is also owned by SBF.

This means that Alameda Research has billions of dollars in FTT token issued by Sam’s other business FTX exchange. Alameda Research has allegedly used the FTT tokens on their books as collateral to borrow USD stables.

It’s hard to pin point exact reason for Binance’s action against SBF and FTT token. One reason may be that Binance considers holding FTT token on their books as liability. This liquidation of FTT token holding may be an effort to reduce the exposure and derisk.

Many crypto enthusiasts are also arguing that what’s stopping Binance from selling their FTT holding directly to Sam Bankman-Fried and FTX instead of dumping in open market.

How Low Can FTT Price Slide?

The incident is definitely impacting FTT token price and it has already slumped by more than 10% in last 24 hrs. $21-$22 is a strong support region. A breakdown of $21 support may result in a very sharp decline in price printing all time lows for the token price.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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