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Blockchain News

FTX’s token plunges 20% in a hurry due to the Binance debate

The price of FTX’s FTT token has decreased significantly over the last hour. According to data tracked by CoinGecko, the token’s price dropped 19%, from approximately $22 to under $18 shortly after 10:00 p.m. ET.

The announcement coincides with a high-profile stalemate between FTX and Binance, two of the biggest exchanges in the cryptocurrency market.

On November 6, Binance CEO Changpeng Zhao tweeted that the exchange would start liquidating its FTT holdings as a result of “recent discoveries.” It appears that Zhao was alluding to an earlier CoinDesk article that detailed Alameda Research’s financial sheet. Sam Bankman-Fried, who runs FTX, is the owner of the cryptocurrency trading company Alameda.

Sam Bankman-Fried, CEO of FTX, attempted to calm the market following Zhao’s remarks. He declared the exchange to be “fine” yesterday and urged FTX and Binance to collaborate for the industry’s benefit. At a price of $22 per token, Alameda CEO Caroline Ellison offered to purchase Binance’s FTT holdings.

The price of Solana and FTT may emerge as the most significant data points for tracking the course of the cryptocurrency market this week, according to a letter from market maker B2C2 that was issued on Nov. 7. Traders in the market are worried that Alameda, which has billions of dollars’ worth of the token on its balance sheet, could suffer if the price of FTT drops.

Such a reduction might have an effect on FTX, the exchange to which it is connected. The company has already experienced withdrawal issues. However, according to a recent tweet from FTX, nodes and banks are catching up as the withdrawals wait shrinks and returns to more reasonable levels.

 

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