CZ has only stated “new findings which have come to light” as the basis for selling FTT, the native token of the competing FTX exchange.
“As part of Binances 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 come to light, we have decided to liquidate any remaining FTT on our books. 1/4”
The CEO of Alameda tweeted in reaction to CZ's most recent action that her selling company's financial situation is stronger. In her reply to the post made by the CEO of Binance, she also made a repurchase offer.
“@cz_binance if you're looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!”
Weeks following condemnation of FTX's creator and CEO Sam Bankman-Fried for his regulation ideas, Binance made this decision.
On October 19, Bankman-Fried released a proposal that has since come under fire. It is a thorough route map for regulating monitoring and business norms in the area of digital assets.
Critics claim that Bankman-plan Fried's to establish technical standards endangers both the fundamental principles of DeFi and the leading DeFi teams and platforms in the market. Bankman-Fried has backed off to reevaluate his position on DeFi regulation, nevertheless.
The profits earned by Binance were acquired from FTX last year as part of the firm's withdrawal from an ownership stake that had been held since 2019.
As per CZ, FTX used a $21 billion combination of FTT and BUSD, a stablecoin that was developed specifically for Binance's exchange, to acquire Binance's ownership of the business.
Due to the persistently adverse market attitude and the lack of liquidity, he noted, the liquidation would require a few months. Additionally, the corporation wants to manage liquidity in a way that won't have a negative influence on the market.
However, according to CoinGecko, FTT has dropped 9.5% in the last day, falling from $25.55 to $23.03.
Etherscan data revealed that on Saturday, 22,999,999 FTT—worth $584 million at the time—were moved from a wallet to Binance's exchange. While CoinGecko claimed that the sum is equal to 17% of the FTT in circulation.
The sum was transferred, according to CZ, and this is a part of Binance's plan to sell down its holdings in FTT.
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