With the exception of one involving its own stablecoin, Binance is terminating a number of trading pairs and contracts that use FTT, the cryptocurrency exchange revealed today.
The now-defunct FTX exchange’s native utility token, FTT, offered holders reduced trading fees. Since the platform’s liquidity problem began, the token’s value has drastically decreased.
On Monday morning, Binance said that it had delisted all margin pairs, futures contracts, and Binance Flexible Products for FTX’s native token from the exchange.
On November 15, trading on FTT pairing with Bitcoin, Ethereum, Tether, and Binance coins will stop. Several spot trading pairs will also be discounted. The ability to trade FTT in a pair with Binance’s own stablecoin, BUS, will remain available to users.
“At Binance, we conduct regular reviews of listed assets to ensure they meet our standards to protect our users. Based on our recent reviews, we will remove and cease trading of several FTT trading pairs.”
By eliminating its margin pairings on FTT, Binance is also preventing users from shorting the token at a time when its unfortunate issuer is collapsing.
It happened soon after CZ, the CEO of Binance, explained that his company never shorted FTX’s cryptocurrency.
He then added, “the company still has a bag of [FTT]” as it stopped selling off the token after FTX CEO Sam Bankman-Fried called CZ asking for help. “Very expensive call,” CZ stated.
Binance is adhering to the strategy it outlined earlier this year in the wake of the Terra crash when it banned all trading pairs for both Luna and UST except those against BUS by keeping training of FTT but only against its own stablecoin.
On Sunday, Binance temporarily stopped FTT deposits after observing a “suspicious movement” of a significant volume of the tokens by its contract deployers.