Binance expected to liquidate its entire stake in FTX tokens | The Financial Express

Binance expected to liquidate its entire stake in FTX tokens

According to Cointelegraph, through a November 6, 2022, tweet, Zhao mentioned that the decision was taken post “recent revelations that have come to light”

Binance expected to liquidate its entire stake in FTX tokens
Insights from On-chain analysis projected close to 23 million FTT worth around $584 million at the time transferred from an unknown wallet to Binance

Changpeng “CZ” Zhao, CEO, Binance, a cryptocurrency exchange, stated the point of his company going through liquidation for the entirety of its position in FTX Token, the native token of competing exchange FTX, as reported by Cointelegraph.

According to Cointelegraph, through a November 6, 2022, tweet, Zhao mentioned that the decision was taken post “recent revelations that have come to light.” In another tweet, CZ provided the explanation that the FTT liquidation was post-exit risk management, on account of lessons from the fall of Terra Luna Classic (LUNC) and its effect on market participants.

“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards,” Zhao mentioned. 

On the basis of information by Cointelegraph, it is believed that Binance’s liquidation decision is due to reports around a leaked balance sheet from Sam Bankman-Fried-based Alameda Research, which alleges billions of dollars worth of Alameda’s assets being tied up in FTX’s token. Caroline Ellison, CEO, Alameda Research, highlighted that the balance sheet didn’t provide the entire picture, and the questioned sheet is only for “a subset of their corporate entities” and other assets worth over $10 billion weren’t shown. 

Moreover, Cointelegraph noted that Zhao didn’t reveal how much FTT Binance would be willing to sell but made the revelation that the exchange had approximately $2.1 billion dollars equivalent in Binance USD (BUSD), the exchanges stablecoin, and FTT on account of its exit from FTX equity in the previous year. Insights from On-chain analysis projected close to 23 million FTT worth around $584 million at the time transferred from an unknown wallet to Binance, which Zhao provided the confirmation as part of the exchange’s token offloading.

With insights from Cointelegraph)

Also Read: Blockchain as a resource; how the technology can bring about a new definition of Enterprise Resource Planning

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 07-11-2022 at 09:34 IST