Binance Will Sell Off Its Entire Position in FTX Tokens

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Last Updated on November 7, 2022 by Bitfinsider

The CEO of Binance, Changpeng “CZ” Zhao, announced on Sunday that his exchange is liquidating its shares of FTT, the native token of rival exchange FTX.

Zhao referred to “new revelations that have surfaced,” but did not elaborate publicly or react to Bitfinsider’s request for clarification.

The move comes after weeks of criticism directed at FTX’s founder and chief executive officer, Sam Bankman-Fried, over regulatory ideas he outlined in a blog post recommending curbs on DeFi. Since then, he has pledged to modifying his regulatory stance.

Binance got the FTT funds as a result of its departure from an early equity stake in FTX that it had held since 2019. Zhao announced that FTX had purchased Binance’s interest in the company for $2.1 billion worth of FTT and BUSD, the native stablecoin of Binance’s exchange.

Due to market conditions and low liquidity, CZ estimates that the liquidation will take many months to conclude. He added that efforts will be made to minimize the market impact of the FTT.

According to Coinmarketcap, FTT has declined 9.5% during the previous day to $23.03 from $25.55, having rebounded from a low at $22 on Sunday.

Saturday saw the movement of 22,999,999 FTT, worth $584 million at the time, from a wallet to the Binance exchange, according to Etherscan. According to CoinGecko, this is 17% of the total circulating FTT supply. CZ stated that the transferred monies were a part of the exchange’s efforts to sell its position in FTT.

Sunday on Twitter, Zhao emphasized that the company’s move to liquidate its stock in FTT was not a jab at its rival. However, one Twitter user noted that the sale could affect loans collateralized by the token.

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