The value of the FTX coin has plummeted as a result of the Binance debate.
FTT, the coin issued by FTX, has declined dramatically in the last hours.
According to Coinmarketcap statistics, the token’s price plunged 19%, from around $22 to around $18 just after 10:00 p.m. ET.
The announcement comes amid a high-profile conflict between FTX and Binance, two of the largest cryptocurrency exchanges. Binance CEO Changpeng Zhao claimed in a tweet on Nov. 6 that the exchange will begin selling down its FTT holdings in light of “recent discoveries,” presumably referring to a previous CoinDesk investigation that exposed specifics of Alameda Research’s balance sheet. Alameda is a cryptocurrency trading business operated by FTX’s Sam Bankman-Fried.
Following Zhao’s remarks, FTX CEO Sam Bankman-Fried attempted to reassure the market. He stated yesterday that the exchange is “fine,” and he urged FTX and Binance to collaborate for the sake of the industry. Caroline Ellison, CEO of Alameda, has offered to acquire Binance’s FTT holdings at $22 per token.
In a report released on November 7, market maker B2C2 stated that the prices of Solana and FTT may become the most crucial data points for tracking the crypto market’s development this week. Traders are afraid that a decline in the price of FTT may have a knock-on impact on Alameda, which has billions of dollars of the token on its balance sheet.
a: we want to thank our team for working tirelessly to process the backlog of withdrawals. See here for context:
queue is decreasing and getting back to more reasonable levels; nodes and banks catching up
— FTX (@FTX_Official) November 8, 2022
A drop of this magnitude might have an impact on the exchange to which it is linked, FTX. Withdrawals have already caused problems for the company. However, FTX stated in a recent tweet that the withdrawals queue “is diminishing and returning to more realistic levels; nodes and banks catching up.”
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