The whole company's FTX Token holdings will be liquidated, according to Changpeng Zhao, CEO of cryptocurrency trading platform Binance.
Zhao said that nearly 23 million FTT, or $584 million at the time of writing, were transferred from an undisclosed account to Binance as part of the exchange's token unloading.
According to Changpeng Zhao, CEO of the platform Binance, the whole company's holdings in FTX Token will be liquidated. According to the CEO of Binance, on November 6th, the board unanimously decided to liquidate due to recent developments that have become apparent.
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In response to CZ's tweet, The FFT liquidation was merely future risk management. Due to Terra's Luna Classic's situation and how it has an impact on market players, it was determined to take this action. He further said that people that covertly oppose other participants in the sector without their knowledge wouldn't receive any backing from them.
Sam Bankman Fried, the owner of Alameda Research, recently released a balance sheet, which contained the data and statistics that led to the current move Binance intends to make. The source of information stated that FTX's token is connected to Almeda assets valued at billions of dollars.
The balance statement is just for "a portion of our business companies," and additional assets worth more than ten billion dollars "aren't shown there," according to Alameda Research CEO Caroline Ellison, who claimed in a post on November 6 that perhaps the balance sheet didn't accurately illustrate the situation.
Bankman backed with Ellison's tweet in which she said that several baseless rumors had been spreading. When Binance was questioned to get more information on the decision to liquidate, a business representative noted that there are currently no new developments.
Zhao did not mention the amount of FTT Binance will liquidate, although he did mention that following its departure from FTX shares the year before, the exchange now has approximately USD two billion estimations in FTT and Binance USD, the virtual currency used by the exchange.
He added by stating that Binance will work to "reduce market effect" and that he anticipated the asset auctions to require "several months to finish." Zhao acknowledged that the movement of almost twenty-three million FTT, or about $584 million at the moment of publication, from an unidentified account to Binance was a part of the exchange's token unloading. This information was revealed through on-chain research.
A succession of releases prompted the cost of FTT to fluctuate, rising from almost $23 to $24.50 in two hours on November 6 before falling more than 9% to $22.28. FTT is selling at about twenty-two dollars, down more than 4.3% in the past day. Let us know what your thoughts are in the comment section below.
