Binance moves to liquidate the entire FTX token position

Binance CEO Changpeng “CZ” Zhao said on Sunday that its cryptocurrency exchange is liquidating its holdings in FTT, the native token of rival exchange FTX. Zhao referred to “recent revelations that have come to light” but did not elaborate.

The decision follows weeks of criticism directed at FTX founder and CEO Sam Bankman-Fried for regulatory proposals he presented in a blog post recommending restrictions on DeFi. He has since committed to reviewing his regulatory position.

Binance received the funds in FTT as part of its exit last year from an initial equity position in FTX it had since 2019. FTX had taken over Binance’s stake in the company through a $ 2.1 billion mix of FTT and BUSD. , the original stablecoin of Binance exchange – according to a declaration by Zhao.

CZ said the liquidation should take a few months to complete due to market conditions and limited liquidity. It will also be done to try to minimize the market impact on FTT, he said.

Regardless, according to CoinGecko, FTT fell 9.5% on the last day to $ 23.03 from $ 25.55, rebounding from a low of around $ 22 on Sunday.

On Saturday, 22,999,999 FTT, worth $ 584 million at the time, were transferred from a wallet to the Binance exchange, according to Etherscan. That’s the equivalent of 17% of FTT’s outstanding supply, according to CoinGecko.

Zhao said in a Twitter thread on Sunday that the decision to liquidate his position in FTT was not a possibility for his competitor. However, a Twitter user suggested that the sale could impact token-backed loans.

Caroline Ellison, CEO of Bankman-Fried Alameda Research’s cryptocurrency trading firm, has offered to buy Binance’s remaining FTT for a fixed price of $ 22 if Zhao is also trying to “minimize the impact on the market. “of the move.

Binance has been the leading exchange in terms of FTT volume over the past day. In the past 24 hours, Binance accounted for 6.3% of FTT trading volume or $ 95.4 million, according to CoinGecko.

Binance was one of the first investors in FTX and while the amount of the initial investment was not disclosed, Zhao said Forbes around the time of Binances’ release, “We have seen tremendous growth from them, we are very happy with it, but we have come out completely.”

On Sunday, CZ said his company usually holds long-term tokens, but that Binance has held its position in FTT for too long.

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