Controversy surrounds two of the most well-known cryptocurrency exchange firms with a token caught in the crossfire. But why is the FTX exchange’s native token crashing?
FTX and Binance are seemingly intertwined at the moment. Both cryptocurrency exchanges are engaged in a battle that saw Binance dump $500 million worth of FTT. The token price has taken a drastic hit, and a crash has ensued. You also may be asking why this is the case.
Binance vs. FTX?
It was reported today by Finbold that the market capitalization of FTT — the native token of the FTX Exchange platform — dropped $630 million in just 24 hours. The price of the token itself deteriorated by over 20% in that same time span.
The token of Sam Bankman-Fried’s cryptocurrency platform is quickly crashing. Trading at a price of $17.33, it has rapidly declined, and the token has declined at a rate of 28.38% over the last month. All of this took place with a coinciding trading volume that was described by Coinalyze as reaching “thermonuclear.”
So, what happened? Why is the FTX exchange’s native token of FTT crashing so significantly? Well, a lot of the developments have followed Binance CEO Changpeng Zhao’s announcement that the company was set to “liquidate any remaining FTT on our books”.
That decision was followed by Binance’s selling of 22,999,999 FTT worth $584,828,174 in early November. Subsequently, the FTX CEO took to Twitter, noting that competition was spearheading, “false rumors”.
Binance and FTX Come Together
In a surprising turn of events, Binance co-founder Yi He spoke about the selling. “The Portfolio Management team at Labs decided to sell FTT based on the risk-control metrics that we monitored,” Yi He stated.
She concluded, “Our decision to sell FTT is a pure investment-related exit decision, which has nothing to do with ‘a war,’ and we have no intention to engage in drama.”
Additionally commenting on the entire situation is the OKX CEO, who stated that conflict between the two exchanges isn’t good for the industry. Moreover, the executive stated that FTX could reach a similar fate as LUNA, and it could negatively impact cryptocurrency as a whole.
The CEO stated, “Both customers and regulators will lose some confidence in the whole industry”, as he was sharing his hopes that both Binance and FTX can reach a new deal.
In a shocking turn, it has been announced that Binance is officially set to acquire FTX.com in a historic deal. Conversely, the two cryptocurrency exchanges have now joined forces, this according to the leadership of both Binance and FTX companies.