FTT, the native token of one of the largest crypto exchanges, FTX, has come under pressure and dropped more than 10% in the last 24 hours. The reason FTT has been subject to a massive sell-off by investors may be the news that 23 million tokens, equivalent to $580 million, have been moved to the Binance exchange. According to rumors circulating in the crypto space, this volume is Binance’s unlocked investment in FTT.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 22,999,999 #FTT (584,818,174 USD) transferred from unknown wallet to #Binancehttps://t.co/Nm2jz9MKW0
— Whale Alert (@whale_alert) November 5, 2022
The move of the half-billion dollar FTT bag to Binance, possibly by the exchange itself, is actually a consequence, not a cause. The origin can be traced to a recent investigation into the assets of FTX and its affiliated trading firm Alameda Research.
Is Alameda Research insolvent?
Without going into the details of the investigation, it reveals the fragility of Alameda’s balance sheet, according to which the firm’s biggest asset is FTT, with which they borrow money from creditors. Additionally, Changpeng Zhao, the head of Binance himself, liked the investigation on Twitter.
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— DIRTY BUBBLE MEDIA: THE ALAMEDA SPECIAL (@MikeBurgersburg) November 4, 2022
At the same time, according to a well-known crypto journalist Colin Wu, the claim that Binance is going to dump FTT may be incorrect. The journalist suggests that the exchange may have simply moved all of its tokens to one address after some of its investments were unlocked.
Source: https://u.today/binance-dumps-ftx-as-ftt-loses-11-in-24-hours