The FTT Token price is leaving no possibility open as it drops like dead wood in the sky. Since the weekend, the token has been deeply involved in a rhetorical war of words between two crypto biggies: Binance CEO Changpeng Zhao (CZ) and FTX’s Sam Bankman-Fried (SBF). In the meantime, FTT is trading at $14.61 at the time of writing, pursuing what would seem to be a terrible collapse.
The FTX Token price has dropped by more than 35%
Conflicts have been established between two of the crypto sector’s heavyweights, who are unaware of the market’s already miserable state. On Sunday, CZ posted on Twitter that Binance, the world’s biggest crypto exchange by volume, is prepared to sell nearly $530 million in the FTT token, the native token of Sam Bankman-FTX Fried’s exchange FTX.
The token’s position below the moving average, as seen on the chart, suggests a developing declining trend. If FTT fails to remain above the target demographic of $14.00, the decrease will be aggravated.
Frightened investors proceeded to pull back assets from the exchange on Monday, which sent FTT to $14.92, flat from $21.90—levels previously not seen since last February. FTT has a market valuation of $3.88 billion. Other digital tokens have taken a beating as well, with bitcoin and ether dropping 5% and 7%, respectively, in the last 24 hours. The global cryptocurrency market tumbled 4.6% on the whole.
FTX has seemed to have stopped handling client withdrawals. The last transaction was handled more than one hour ago, as per data from Etherscan.
Fears grew after Changpeng Zhao, CEO of competing exchange Binance, tweeted on Sunday that he intended to liquidate at least $342 million in FTT (at today’s costs) in the following months because of recent disclosures that have come to the fore.
Yes, this is part of it. https://t.co/TnMSqRTutr
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Even though CZ, as he is publicly recognized, did not elaborate on what disclosures he meant, they appear to be linked to a logjam of withdrawal demands at FTX and accusations of FTX’s balance sheet vulnerability.
@cz_binance if you’re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!
— Caroline (@carolinecapital) November 6, 2022
Caroline Ellison, CEO of Alameda, reacted to Zhao on Twitter with an offer to purchase Binance’s FTT assets for $22 per token. Zhao voiced his displeasure, and said, “I believe we will remain in the free market.”
How to make money from the downfall of FTT?
At the time of writing this the FTT price is sitting at $14.61. Volatility is an inherent feature of the cryptocurrency market. A coin that is rising today may see a decrease tomorrow that you could not have anticipated. In fact, the valuation of many coins varies throughout the day. Crypto volatility, coupled with federal regulations, or such FTX vs Binance events leads to fear-driven speculative bubbles and slight retracements. To prevent unwanted loss when this takes place, you can employ a concept known as short selling, which enables you to benefit when prices are dropping — even if you do not own cryptocurrency.
Before you employ any technique to short-sell FTT, you must first recognize a trend. Because the market is extremely volatile, many factors could lead it to move in either direction. Politics, hype culture, and the impact of noteworthy individuals like CZ for example, can all destabilize the crypto market.
This is the first method most people come across when looking to short FTT or any other cryptocurrency. Simply put, you borrow crypto from an exchange at a specified price and then sell it.
Then you sit back and watch for the price to drop. You purchase the currency and recover the borrowed coins from the exchange when it actually occurs. You earn the difference between the two price levels in this way. Crypto exchanges such as Bybit can be effectively used for making a profit.
FTT Token and How to trade on Bybit with this leverage?
Step 1: Registration on Bybit
- Visit the Bybit site via this link
- Enter your e-mail address or cell phone number and password
- Click on “Sign Up”
- As soon as you have clicked on “Sign Up”, you will receive a code by email. You have to enter this code in the next window to be able to use your account.
You should be able to log in immediately after registering. If not, you can log in using the information you originally defined. When logged in, move your cursor to your e-mail address in the upper right corner, but do not click! A drop-down list will appear when your cursor is over your email. There, you must select “My Assets.”
- If you don’t already have FTT but want some, you can get some on Bybit. The procedure is also very straightforward.
- To begin, go to the page where you can also deposit FTT and click on “Fiat Gateway.” You should then be taken to a new page.
- The window will appear as soon as you click on “Fiat Gateway.” By using the red arrow, you must select the currency you wish to deposit. In this case, USD. Then, to the left of the “1,000,” type in the amount you want to deposit. For instance, 1000. After you have entered and selected everything, you must click “Buy now.”
How to Short FTT for Profit During Crashes and Retracements?
Shorting is a method of profiting from the decline in the value of an asset. Traders can use shorting when they anticipate the market value of a coin to drop. Shorting cryptocurrency is a bit risky because markets are commonly uncertain. Of course, there is the potential of profit, but given the market’s fluctuation, major losses are also plausible.
When you hold a long position in a currency, the price may drop, but hardly ever to zero. Even if you don’t earn any money, you keep your original investment. When you short a coin, the price can continue to climb endlessly, growing your losses. That is why you must perform thorough research before taking the nosedive. If you’re self – assured in your research and genuinely think the price will drop go ahead and undertake the calculated risk because it could outcome in thousands of dollars in earnings.
- Now you intend to short one FTT when its value is $15 since you expect its price to fall in the next few days.
- You borrow one FTT from a broker and sell it for $15.
- A few days after you borrow the FTT, FTT’s price falls to $12.
- You buy one FTT for $12 and return it to the broker.
- Now you’ve made a profit of $3, minus any interest that you have to pay the broker for borrowing the FTT.
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Source: https://cryptoticker.io/en/ftt-token-dropped-by-more-than-35-after-binance-ceo-changpeng-zhaos-action/