FTT down 11% as Binance seems ready to dump $ 580 million
FTT, the native token of one of the largest cryptocurrency exchanges, FTX, has come under pressure and dropped more than 10% in the past 24 hours. The reason FTT was subject to a massive sell-off by investors could be the news that 23 million tokens, equivalent to $ 580 million, have been moved to the Binance exchange. According to rumors circulating in the crypto space, this volume is Binance’s unlocked investment in FTT.
– Whale alert (@whale_alert) November 5, 2022
The transfer of the half-billion-dollar FTT exchange to Binance, perhaps by the exchange itself, is actually a consequence, not a cause. The origin can be traced back to a recent investigation into the assets of FTX and its affiliated trading company Alameda research.
Is Alameda Research insolvent?
Without going into the details of the investigation, we discover the fragility of Alameda’s balance sheet, according to which the company’s largest asset is FTT, with which they borrow money from creditors. Furthermore, Changpeng Zhao, the head of Binance himself, appreciated the investigation on Twitter.
NEW: “IS ALAMEDA RESEARCH INSOLVENT?”
According to a recent leak, the company’s finances depend on the same scheme that destroyed the Celsius Network. Will it work differently for SBF? 🧵👇https: //t.co/gs4mQ7ul14
– DIRTY BUBBLE MEDIA: THE ALAMEDA SPECIAL (@MikeBurgersburg) November 4, 2022
At the same time, according to to well-known cryptocurrency reporter Colin Wu, the claim that Binance will download FTT may not be correct. The reporter suggests that the exchange may have simply moved all of his tokens to one address after some of his investments were unlocked.