Changpeng CZ Zhao informed the public that Binance will be liquidating its FTX token (FTT) stash. The reason behind this decision are some recent developments around Alameda Research, the sister company of FTX. While this decision is likely going to impact the price of FTT , Binance decided to liquidate its position in a span of six months. While CZ told us that Binance is going to liquidate all of its FTX token holdings, he never mentioned the amount of FTT the company holds. As per his tweet, Binance holds a combined $2.1 billion worth of BUSD and FTT. Nevertheless, we are not sure what portion of that sum accounts for the FTT the exchange holds.
The CEO of Alameda, Caroline Ellison, tweeted regarding this issue. She claimed that the recent developments are nothing to be worried about. Moreover, Caroline offered CZ to purchase all of Binance’s FTT for a price of $22. All this pressure on FTX and its sister company led to the increased volatility FTT. Although CZ made sure to explain his plan of liquidating the FTX tokens while keeping market impact at a minimum, FUD kept spreading about the upcoming FTT dump.
Alameda Research’s Recent Scoop
Coindesk, a cryptocurrency news agency, got insight on the financial status of Alameda Research. Just some days after, this news agency published a report including Alameda’s balance sheet. This sparked controversy and FUD in the market. Not even that, but it got so big that CZ Binance decided to sell all the FTT that Binance owns.
While the report does not contain any information that could be incriminating to the founders or CEOs of these companies, it does contain information that makes the project look less serious. Alameda Research is purely reliant on the native currency of FTX, the FTX token. This leaves room for market manipulation.