All of Binance’s FTX token (FTT) holdings are being sold off. CEO Changpeng Zhao said that the reason is “due to recent disclosures that have come to light.” Regarding any notion that this is a move against a rival, he clarified, “It is not. Every time a project publicly fails, it harms every user and every platform in our nascent sector.
Binance is selling off all FTX tokens
Changpeng Zhao (CZ), the CEO of Binance, a major cryptocurrency exchange, tweeted on Sunday that all of the FTX tokens (FTT) listed on his platform are being liquidated.
According to the CEO, Binance gained $2.1 billion in FTT and BUSD (Binance’s stablecoin) after selling its FTX ownership last year. Binance invested in FTX at the beginning. They have decided to liquidate any remaining FTT on their books as a result of recent revelations, Zhao wrote.
The CEO of Binance clarified in later tweets: They will strive to do it in a way that minimizes market damage. They anticipate that this will take a few months to finish because of the market circumstances and the lack of liquidity. He continued. Normally, they keep tokens for a long time. Additionally, they have kept this token for this long.
CZ further explained:
Their FTT’s liquidation is only post-exit risk management, as they have learned from LUNA. They supported each other in the past, but They won’t act romantic after being divorced. No one is a threat to them. However, they won’t endorse individuals who advocate against other business players behind their backs. Onwards.
The CEO asserted that the sale is not “a move against a competitor as some have suggested, noting that Binance always fosters collaboration amongst industry players. Their business is still in its infancy, and every time a project fails in front of the public, it harms every user and every platform, he concluded.
The 22,999,999 FTT transferred to Binance on November 5 as part of his exchange’s FTX token exit move was acknowledged by CZ shortly after his announcement.
Response from Sam Bankman-Fried
He was going to write a different thread, but he took a deep breath and reminded himself of something they’d all do well to remember: that they are all in this together, and he wishes the best to “everyone” driving the industry forward,” FTX CEO Sam Bankman-Fried wrote in response to the Binance CEO’s tweet regarding FTT.
On October 19, FTX published a document titled “Possible Digital Asset Industry Standards,” which sparked outrage among the crypto community. Bankman-Fried, a Democratic Party megadonor, has come under criticism for his provocative remarks on the decentralised finance (defi) protocol. Meanwhile, CZ is a big fan of defi, as stated previously: “Binance is investing substantially in defi.”
