FTX founder and Chief executive officer Mike Bankman-Fried required to Twitter again on November. 7 to assert that “a competitor is attempting to visit following the cryptocurrency exchange with false rumors” whilst with collaboration with rival exchange Binance.
Your comments ought to adopted an announcement from Binance Chief executive officer Changpeng “CZ” Zhao concerning 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:
“It’s [FTX] 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 and 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
Previously November. 7, FTX’s Twitter account 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 (BTC) withdrawals during the time of publication.
On Reddit, some users expressed alarm regardin 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, CZ 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 — on November. 7. Based on Zhao, the transfer was 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 sell-from FTX Token that broke underneath the pattern’s support line near $22.50, supported with a volume spike. The sell-off ongoing on November. 7 underneath the support line, raising perils of a bearish continuation 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.
