Sam Bankman-Fried, the Founder and CEO of FTX, has spoken up on the clash of the crypto titans after Binance, the world’s largest cryptocurrency exchange, revealed its intention to liquidate the entirety of its FTX token (FTT) holdings.
Why Is Binance Liquidating Its FTT Holdings?
On Sunday, November 6th, Binance Founder and CEO Changpeng “CZ” Zhao tweeted that the exchange would be looking to sell its remaining FTX Tokens (FTT)—a stash worth more than $529 million.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4— CZ 🔶 Binance (@cz_binance) November 6, 2022
According to CZ, the decision to liquidate the exchange’s FTT holdings was made due as a result of “recent revelations that have come to light.” Reportedly, the Binance CEO was making reference to the $3.66 billion unlocked FTT making up Alameda’s assets.
SBF and Alameda React to the News
The revelation of Alameda’s significant exposure to FTT has raised huge concerns throughout the crypto space regarding the financial viability of FTX and Alameda Research.
In response to the FTT liquidation announcement by CZ, the CEO Alameda Research, which is also part of Sam Bankman-Fried’s expanding crypto empire, reacted by tweeting that the company would happily buy the FTT from Binance at a value of $22 each.
SBF, looking to minimize the impact of the news, expressed his respect for CZ’s contribution to the crypto community, and called for the titans of the crypto industry to build blockchain, not war.
On the Flipside
- In the wake of the initial announcement from Binance, the price of FTT plunged to as low as $21.73, before recovering back to the $23 mark.
The 24 hour price chart for FTX Token (FTT). Source: CoinMarketCap
Why You Should Care
CZ announced that his company would execute the transaction in a way that “minimizes market impact”, explaining that it could take “a few months to complete.”
Read more on Alameda’s balance sheet:
Bankman-Fried’s Alameda Research’s Assets Are Reportedly “Entirely Illiquid”
Find out why SBF passed on the Twitter investment:
Sam Bankman-Fried Explains Why FTX Passed On Musk’s Twitter Investment Opportunity