FTX Token Plummets, CEO Sam Bankman-Fried rejects bankruptcy rumors

FTX Token Plummets, CEO Sam Bankman-Fried rejects bankruptcy rumors

As rumors concerning the stability of billionaire Sam Bankman-Fried's  FTX crypto exchange grew over the weekend, the CEO of FTX tweeted on Monday morning that "FTX is fine. Assets are fine."

"FTX has enough to cover all client holdings," he added. "We don't invest client assets (even in Treasurys). We have been processing all withdrawals, and will continue to be."

According to a report last week by CoinDesk, the balance sheet of FTX sister company Alameda Research was found to be loaded with FTX's native exchange token FTT. This sparked a public argument between Binance CEO Changpeng Zhao (CZ), who also owns a substantial amount of FTT tokens, and Alameda CEO Caroline Ellison.

CZ declared that his exchange will start liquidating any remaining FTT on its books. Ellison responded on Twitter by stating that Alameda was prepared to buy any amount of FTT Binance wanted to sell for $22 per unit (about the price at the time).

CZ appeared to reject Ellison's offer in a tweet sent out on Monday afternoon, stating that Binance will "stay in the free market."

Bankman-Fried tweeted on Monday, "I'd love it if we could work together for the ecosystem", referring to CZ.

FTT price plunges

At around 09:50 AM on November 8, the FTT token price started to dump strongly when it could no longer hold the $ 22 milestone as stated by CEO Alameda Research. This coin is currently losing up to 20% of its value over 24 hours and bottoming at 17.04 USD – the lowest value level since February 2021.