Binance To Sell Off $500M $FTT Holdings Following Insolvency Rumors, CEO Of Alameda Fights Back 12

Binance To Sell Off $500M $FTT Holdings Following Insolvency Rumors, CEO Of Alameda Fights Back

  • Binance CEO Changpeng Zhao took to Twitter to announce that the exchange will liquidate his company’s FTT holdings following recent relevations.
  • The exchange’s FTT holdings are estimated to be worth $500 million.
  • CZ has cited “recent revelations” regarding the FTT token as the reason for this move
  • A recent article about Alameda Research’s financials likely triggered this sale. 
  • Alameda’s CEO has offered to buy Binance’s FTT stockpile. 

Binance CEO Changpeng Zhao took to Twitter earlier today to announce that his exchange will be getting rid of its FTX Token (FTT) holdings. The announcement comes after days of speculation and FUD about FTT.

As for the timeline of this sale, CZ stated that it will be spread out over a period of several months in order to limit the impact on the market.

We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete”

Alameda’s Financial Health At Risk?

CZ cited “recent revelations” concerning the token which incited the sale. These revelations are likely to be the financial health of Alameda Research. Alameda is Sam Bankman-Fried’s quantitative trading firm. Alameda also happens to be the largest holder of FTT, along with its sister firm FTX. Alameda and FTX hold a total of 245 million FTT, which is roughly 74.5% of the token’s total supply. 

At present time FTT is trading at $22.6, down more than 7% over the past 24 hours. The token’s price saw a sharp decline following the FUD around Alameda’s finances. This can be traced back to an article that was published by CoinDesk earlier this week, which cast a shadow of doubt over the company’s financial health. The fact that the majority of Alameda’s assets are a token created by FTX, has caused speculation regarding the future of FTT. 

Caroline Ellison, CEO of Alameda Research, responded to CZ’s tweet with an offer to buy the exchange’s FTT stock at $22 per token. Ellison also addressed the speculation about her company’s finances and clarified that the balance sheet in question was that of a subset of Alameda’s corporate entities.