Binance will sell the rest of FTX Token (FTT) after rumors emerged about the financial health of the Alameda company. "It's just post-exit risk management, learning from LUNA," Changpeng Zhao said.
Binance decided to sell what is left of FTX Token
CZ is concerned about the financial health of the Alameda Research company
The CEO of this company replied that they had undisclosed coverage and that they bought the tokens from her
Binance CEO Changpeng Zhao, CZ, took to Twitter yesterday to share a decision made after learning about the balance sheet of trading firm Alameda Research, a company owned by billionaire Sam Bankman-Fried.
He said that he will sell the remaining FTX Tokens (FTT) that he had on his books that he took over as part of his departure from Alameda sister company FTX last year.
Liquidating our FTT is just post-exit risk management, learning from LUNA. Before we gave support, we are not against anyone. But we will not support people who put pressure on other industry players behind their backs.
https://twitter.com/cz_binance/status/1589374530413215744?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1589374530413215744%7Ctwgr%5Ee7cba17dd481e22cf4ea7ecf60ecaeebfe202f18%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.diariobitcoin.com%2Fmercados% 2Fexchanges%2Fbinance-decided-to-sell-all-its-ftx-token-we-dont-intend-to-make-love-after-divorce-says-cz%2F
The thread continued with more information from CZ:
We will try to do it in a way that minimizes the impact on the market. Due to market conditions and limited liquidity, we expect this to take a few months to complete.
He added diplomatically enough:
Binance always encourages collaboration between industry players. Regarding any speculation as to whether this is a move against a competitor, it is not. Our industry is in its infancy and every time a project publicly fails, it harms all users and all platforms
He ended by saying
We generally hold tokens for the long term. And we have held on to this token for so long. We remain transparent with our actions.
Zhao did not say how much FTT the firm will sell from him, but as part of the cryptocurrency exchange's exit from capital FTX last year, Binance received roughly $2.1 billion in the form of BUSD (Binance stablecoin) and FTT.
Alameda's response
Meanwhile, Alameda Research CEO Caroline Ellison
tweeted that the financial condition of her trading company is stronger than a balance sheet CoinDesk wrote about reflects. She also offered, in response to the Binance CEO's post, to buy the firm's FTT token holdings from her for $22 each.
CZ: If you're looking to minimize the impact of the market on your FTT sales, Alameda will gladly buy it all from you today for $22!
https://twitter.com/carolinecapital/status/1589287457975304193?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1589287457975304193%7Ctwgr%5Ee7cba17dd481e22cf4ea7ecf60ecaeebfe202f18%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.diariobitcoin.com%2Fmercados% 2Fexchanges%2Fbinance-decided-to-sell-all-its-ftx-token-we-dont-intend-to-make-love-after-divorce-says-cz%2F
Speculation on the FTT token led to extreme price volatility amid comments on Twitter from both sides. At 7:00 am New York time today, Monday, the price of the FTT token is USD $22.67, that is, a little higher than the offer given by Alameda to Binance.
CZ's announcement comes after rumors emerged about the financial health of Sam Bankman-Fried's trading company, Alameda Research, after a leaked balance sheet reviewed by CoinDesk revealed that the trading company owned $5.8K. million in FTT tokens (including FTT tokens pledged as collateral) as of June 30. Alameda was disclosed as having $14.6 billion in assets and $8 billion in liabilities, including $7.4 billion in unidentified loans.
On Saturday, Alameda Research CEO Caroline Ellison responded to the rumors by tweeting that Alameda had more than $10 billion in assets "not reflected" in the leaked balance sheet. Ellison added that Alameda had undisclosed hedges and had already paid back most of its outstanding loans.
