FTX crypto exchange token collapsed by 29% after the start of altcoin sales by Binance

Earlier, Alameda offered Changpeng Zhao to buy out all FTT on the over-the-counter market at the rate of $22

08.11.2022 - 06:45

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What’s new? The native token of the FTX (FTT) crypto exchange plummeted by 29% to $15. This came after crypto exchange Binance began a complete liquidation of its positions in FTT. As the asset has fallen below the $22 level, Alameda Research, owned by FTX CEO Sam Bankman-Fried, will not be able to buy it back, as the firm’s CEO Caroline Ellison had previously stated. As of November 8, 07:10 UTC, FTT is trading at $16,75, according to Binance.

Source: Binance.com

More details on the situation. As part of the liquidation, 23 million FTT worth $584,8 million have already been transferred to Binance. The exchange’s head Changpeng Zhao said that it would be carried out over several months to minimize the impact on the market. The decision itself is likely related to Alameda’s disclosed reports, which show that FTT tokens represent the largest share of the company’s accounts.

On November 7, Alameda began selling off tokens from its reserves, specifically SUSHI, LDO, CHZ, LOOM, SHIB, LINK, and DYDX. In doing so, the company was transferring assets from FTX to Binance. Alameda’s 56 addresses hold 18 different cryptocurrencies, each with more than $1 million in holdings.

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