What did the CEO of Binance say after the "war" with FTX broke out? – FTT dumped strongly when it lost 22 USD

Crypto community for the past 1-2 days can't take their eyes off the incident between Binance and FTX – Alameda Research. Very quickly, Binance CEO Changpeng Zhao spoke up to explain the recent "controversies".

Comments on many "implicits" of CZ Binance

The latest status line of the Binance boss focuses on explaining the reason for the move to liquidate $ 580 million worth of FTT. At the same time, CEO Changpeng Zhao also voiced his correction about the unnecessary "rumors" in the past few days.

The head of Binance said that the reason he wrote the post announcing the sale of FTT was to be transparent with the community, because the transfer of $ 580 million FTT to Binance is a large number and needs to be clarified. However, what CZ did not expect was that this was a "drop of water that overflowed the glass".

The Binance CEO was also surprised that the crypto community reacted so strongly to the above information, there were many rumors and conspiracy theories about the Binance – FTX relationship. But Changpeng Zhao insists this is not a "war".

“Memes go viral on social media, media and many people are trying to paint this as a 'war'. Sorry to disappoint you, but I use my energy to build, not to compete. Today I spend most of my day on our business and community. I think everyone should do the same. Go back and build!”

In response to a question from account db (@tier10k) about whether Binance would agree to an OTC sale agreement to liquidate positions to Alameda, in order to ensure there is no major impact on the market, CEO Changpeng Zhao only said: :

“Did they buy or will they buy $580 million worth of BNB?”

The above answer implies that Binance will be willing to exchange USD 580 million FTT for BNB – Binance's own token. However, CZ later dismissed that possibility, adding that the exchange still holds LUNA after the May crash.

Along with answering the question with a “question”, Mr. Changpeng Zhao also posted a tweet updating the latest situation about the amount of ETH currently in the Binance hot wallet (with an approximate value of 8 billion USD). This may be the "implicit" of the Binance CEO that while his exchange always keeps users' funds safe, FTX uses users' funds for other purposes, leading to delays in processing requests. withdrawals of customers in the past days.

More importantly, the Twitter community is gradually spreading the news that a large amount of ETH is flowing out of the FTX exchange after recent speculations.

Earlier, Binance co-founder Yi He also affirmed that Binance has absolutely no intention of being aggressive with FTX, but the decision to liquidate FTT is merely a step to manage risk.

On the evening of November 7, FTX CEO Sam Bankman-Fried tweeted to reassure users and confirm that he wanted to make peace with CZ, but it seems that this proposal is still not accepted by the Binance boss.

FTT price plummeted without brakes

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.

Since the news of Binance selling FTT spread, there have been many theories that Alameda Research is counter-selling portfolio coins like SOL to subsidize FTT, leading to the price of SOL also falling. decrease in weight accordingly.

With the price of SOL falling, all eyes will be on the loan order of the "Solend whale" , which could cause $59 million of SOL to be liquidated if the coin's price drops to $21.6. This loan order in the past has caused Solend and the Solana community to "heartbreak" and force an abuse of power when voting to take control of that whale's account.

The "bank run" from FTX continued when in the last 24 hours, up to 1.2 billion USD in ETH and ERC-20 tokens were withdrawn from the exchange, while the deposit was only 540 million USD.

FoxCryptoNews summary

Nov 09, 2022