Binance Will Sell Off Its Entire Position in FTX Tokens

Sam Bankman-regulatory Fried’s ideas have outraged degens, prompting CZ to abandon the FTT.

The CEO of Binance, Changpeng “CZ” Zhao, said on Sunday that his exchange is selling its shares of FTT, the native token of rival exchange FTX. Zhao referred to “new developments that have come to light,” but he did not provide any explanation.

The move comes after weeks of criticism aimed at FTX’s founder and chief executive officer, Sam Bankman-Fried, over regulatory ideas he outlined in a blog post recommending curbs on DeFi. Since then, he has pledged to modify his regulatory stance.

Binance got the FTT money as a result of its departure from an early equity stake in FTX that it had held since 2019. Zhao said that FTX has purchased Binance’s interest in the firm for $2.1 billion worth of FTT and BUSD, the native stablecoin of Binance’s exchange.

Due to market circumstances and low liquidity, CZ estimates that the liquidation will take many months to conclude. He said that efforts would be made to minimize the commercial effect of the FTT.

According to CoinGecko, FTT has declined 9.5% during the previous day to $23.03 from $25.55, having rebounded from a low of $22 on Sunday.

Saturday saw the movement of 22,999,999 FTT, worth $584 million at the time, from a wallet to the Binance exchange, according to Etherscan. According to CoinGecko, this is 17% of the total circulating FTT supply.

Sunday on Twitter, Zhao emphasized that the company’s move to sell its stock in FTT was not a jab at its rival. However, one Twitter user noted that the sale might affect loans collateralized by the token.

CEO of Bankman-crypto Fried’s trading business Alameda Research, Caroline Ellison, offered to purchase Binance’s remaining FTT for a predetermined price of $22 if Zhao wants to “minimize the market effect” of the decision.

Also Read: Polygon Sees Supply Drop As MATIC Leaves Exchanges