FTX founder and Chief executive officer Mike Bankman-Fried required to Twitter again on November. 7 to assert that “a rival is attempting to visit following the cryptocurrency exchange with false rumors”, whilst with collaboration using the rival exchange Binance.
Your comments ought to consume a statement from Binance Chief executive officer Changpeng “CZ” Zhao in regards to the liquidation from the exchange’s position in FTX token (FTT) as “post-exit risk management” over the past weekend.
1) A rival is attempting to visit after us with false rumors.
FTX is okay. Assets are fine.
Details:
— SBF (@SBF_FTX) November 7, 2022
FTX “assets are fine”, based on SBF, who also alleged the exchange has enough funds to pay for all clients holdings and doesn’t invest client assets, even just in treasuries. Also, he stated that:
“[FTX] It’s heavily controlled, even if that slows us lower. We’ve GAAP audits, with > $1b excess cash. There exists a lengthy good reputation for safeguarding client assets, which remains true today.”
Binance co-founder & Chief Customer Support Officer Yi He clarified the sell-from FTT had nothing related to the alleged war backward and forward exchanges.
3）The point we’d prefer to stress would be that the decision to carry or sell an expression depends upon one’s own risk appetite and judgement. Our decision to market FTT is really a pure investment-related exit decision, that has nothing related to “a war” so we don’t have any intention to take part in drama https://t.co/Jl5yQRcouv
— Yi He (@heyibinance) November 7, 2022
Earlier today, FTX’s profile on Twitter also addressed user complaints surrounding withdrawal delays, assuring users that things are running easily using the matching engine, although node throughput remains limited for Bitcoin withdrawals sometimes of publication.
On Reddit, some users expressed alarm toward the developments, likening the problem to Celsius halting withdrawals and misleading its users before the platform’s collapse.
Inside a November. 6 tweet, Zhao stated the choice to liquidate the assets was made after “recent revelations which have been revealed,” in mention of the Terra’s Luna Classic (LUNC) crash and it is effect on the crypto market. Also, he commented around the FTX founder’s recent actions. Inside a tweet from CZ, he added:
“We won’t support individuals who lobby against other industry players behind their backs.”
On-chain analysis implies that a mystery wallet transferred roughly 23 million FTT to Binance — worth around $584 million USD — in early hrs of November. 7. Based on Zhao, the transfer wa area of the exchange’s decision to offload tokens.
Related: FTX addresses user withdrawal complaints among major token movement
The number of tweets triggered a selloff within the FTX Token that broke underneath the pattern’s support line near $22.50, supported with a volume spike. The FTX exchange token’s selloff ongoing on November. 7 underneath the support line, raising perils of a bearish continuation phase within the coming several weeks, as reported by Cointelegraph.
Binance’s decision was affected by allegations the FTX-founded crypto hedge fund Alameda Research may go insolvent because of its contact with illiquid altcoins, including FTT. By June 30, Alameda Research reported an account balance sheet of $14.66 billion with FTT the biggest holding company with $5.8 billion, creating 88% of their internet equity.
