Binance to liquidate FTT holdings and plunge FTX token

Changpeng Zhao, the CEO of Binance, announced today that the exchange will liquidate the FTX (FTT) tokens it still holds. Binance already exited FTX shares last year. According to reports, $584 million worth of FTT tokens have been transferred to the Binance exchange and the price of the tokens has already dropped by 10% in the last 24 hours.

Will Binance get rid of more FTT?

According to Changpeng Zhao’s tweet, Binance will gradually liquidate FTT tokens held to avoid any impact on the market. The full liquidation may take a few months depending on the liquidity available in the market. The Binance CEO also clarified that this should not be seen as an attack on competition.

However, as WhaleAlert reported earlier today, 22,999,999 FTT tokens worth nearly $584.8 million USD were transferred from an unknown wall to the Binance exchange. This is a sign that a massive sale is already underway.

The price of FTT tokens has fallen by more than 10% in the last 24 hours.

Following the announcement of a massive sell-off by Binance, the price of the FTT token has suffered a sharp drop. At the time of writing, the price of FTT is $23.2, down 9% in the last 24 hours. Earlier, as soon as the news broke, the price plunged to $22, which is a new local record.

Why is the price of FTT tokens falling?

As Coindesk reports, controversial information has been revealed in financial documents from FTX exchange and Alameda research.

The two companies have different businesses, but Alameda research’s balance sheet shows a significant amount of unlocked FTT tokens worth nearly $3.66 billion out of a total of $14.6 billion.

The main controversy involves the illiquid FTT tokens that Alameda shows on its books, which are issued by the FTX exchange itself. Both companies are owned by Sam-Bankman Fried.