Why the price of FTT token directly depends on the outcome of the conflict between the CEO of Binance CZ and Sam Bankman-Fried of FTX
On the evening of 06.11, the head of Binance published a series of tweets in which he wrote that Binance received $2.1 billion in BUSD and FTT as part of its exit strategy from investments in FTX. And due to “unethical” actions, Sam Bankman-Fried plans to sell his stake in FTT tokens worth $600 million within 1-2 months on the open market.
Alameda Research CEO Caroline Ellison has publicly called for CZ to sell all FTT tokens at $22 in order to reduce the market’s impact on the exchange’s native FTX tokens.
The current standoff between the owners of major cryptocurrency exchanges comes at a time when the cryptocurrency market is “fragile” and tough regulation from the US, including the DeFi market, is still looming.
FTX’s Sam Bankman-Fried has taken a proactive regulatory stance, trying to significantly limit the rights and freedoms of DeFi protocol developers so that users in the US/other territories with strict laws cannot use the DeFi infrastructure. And the winning side, of course, will be centralized exchanges a la FTX.
He also hinted in one of his tweets that he lobbies in Washington and the head of Binance is closed to those chambers, which has led to the current CZ/FTX/Alameda feud.
The idea behind the current actions of the Binance chapter is quite simple – the collapse of FTTUSD quotes. Also, the actions of the CEO of Binance cause a mass “flight” from the FTX exchange in its favor, and also many creditors may withdraw their loans from FTX, due to the depreciation of collateral in FTT.
CZ / FTX better stop this “war” as soon as possible, because such a fight will not only hurt the price of FTT or the FTX exchange that traders are abandoning, and their liquidity.
Many more members of the crypto community will likely be affected. Because in such a weak crypto market, coins with less liquidity and capitalization can fall very, very hard, and almost all of us have them.
Global chart of FTT token
If we look at the global price chart of FTTUSDT, it becomes clear why the price of $22 per FTT is critical. Below you can see the liquidity level is only around $10. In general, the zone of strong liquidity, where the “big money” took a long position, is in the range of $2.5-4.
We don’t want to see another collapse like Luna.
We hope for a quick and peaceful resolution of this conflict, but each member of the crypto community must draw their own conclusions.
Update on the FTT token situation
22 hours have passed since the publication of the idea, which we have:
- the price of FTTUSDT was not kept above 22 dollars and the price cascaded downwards, the minimum was 15 dollars and -33% from the moment of publication of the idea.
- FTX / Alameda own 10% of Solana tokens and accordingly SOL price fell by -24% following FTT
- The CEO of Bybit accuses FTX of selling 30 million of the 100 million BITs that FTX had promised never to sell. As a result, the price of BIT fell by $0.40 to $0.26, i.e. -26%
Although CEO at Alameda Research, Caroline Ellison wrote that they did not sell BIT. - The CEO of Binance wrote that they did not sell FTT on the OTC desk, but will sell on the market, as previously written. And I also found out that they keep $8 billion worth of ETH unchanged on cold wallets…
- on the Binance exchange it says: “The exchange does not have enough capacity to provide leverage for FTT shorts” or this is the end of the war and it is clear who is stronger and won, it is not yet clear.
- on cryptotwitter, users write that FTX does not allow withdrawing more than 1000 USDC in one transaction. We don’t have FTX acc and can’t verify if this is true.
