Binance CEO resigns following DOJ settlement, FTX token recovers while BNB falls.
Changpeng Zhao, CEO of Binance, has resigned following a settlement with the US Department of Justice (DOJ), in a significant development for the cryptocurrency market. This change in direction had an immediate impact on the market, with FTX's token, FTT, seeing a sharp rise in value, while Binance's token, BNB, saw a sharp decline.
On the day of Zhao's resignation, FTT saw its price jump 42% to $4.26, as reported by CoinMarketCap. This rally is particularly notable given FTT's limited utility, but demonstrates strong institutional interest despite the token's association with FTX's past bankruptcy issues. Earlier this month, FTT hit a year-to-date high of $4.3, suggesting robust recovery momentum following last year's collapse and growing investor optimism about the potential launch of a new version of the exchange platform.
Conversely, Binance's BNB token saw a slowdown, falling 13% to $235 according to Santiment. The day before Zhao announced his departure on Twitter (NYSE:TWTR) and took personal responsibility for his actions, BNB was already under pressure with a liquidation of $3.73 million in long positions and an increase of 68 % of options activity volume. Furthermore, the value of bitcoin dropped to $36,344.38.