Binance Is Dumping $529 Million FTX (FTT) Token Holdings

Binance Is Dumping $529 Million FTX (FTT) Token Holdings

Binance's CEO Changpeng Zhao (CZ) tweeted on Sunday informing that he will sell all of FTX (FTT) tokens on his books as a result of "recent disclosures that came to light."

CZ has emphasized that this is not a move against the company's top rival. He claims that the sale will take a few months because of the lack of liquidity and that Binance will make an effort to lessen the effect on the market.

He did not specify how much FTT his company will sell, but he did note that as part of the cryptocurrency exchange's withdrawal from FTX equity last year, Binance acquired BUSD (Binance's stablecoin) and FTT valued at about $2.1 billion.

According to a person familiar with the exchange who asked to remain anonymous because the information is private, Binance possesses around 23 million FTX tokens, now valued at about $529 million at current pricing.

The announcement follows rumors regarding Alameda Research's financial difficulties a few days ago. A recent report from CoinDesk claims that the trading company, which has very tight relations with FTX, has significant exposure to the FTT coin.

According to Caroline Ellison, CEO of Alameda Research, FTX has an additional $10 billion in unlisted assets.  She also claims that Alameda Research has repaid its loans since July.

Ellison tweeted to CZ that Alameda will “happily buy” Binance’s FTT tokens at $22 if the exchange wants to minimize the market impact.

According to CoinMarketCap, the price of FTT dropped 14% during 24 hour period to $22.02, its lowest level since June, but it quickly recovered in less than an hour.