FTT down 11% as Binance seems ready to dump $580 million worth of it
FTT, the native token of one of the largest crypto exchanges, FTX, has come under pressure and has fallen over 10% in the past 24 hours. The massive sell-off by investors to FTT may have led to the news that 23 million tokens, equivalent to $580 million, have been transferred to the Binance exchange. According to the rumors circulating in the crypto space, this volume is Binance’s open investment in FTT.
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 Bankrupt?
Without going into the details of the investigation, it reveals the fragility of Almeida’s balance sheet, according to which the firm’s biggest asset is FTT, with which they borrow money from creditors. Furthermore, Binance chief Changpeng Zhao himself liked the investigation on Twitter.
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.
