The crypto-verse encountered quite some hurdles this year. The downfall of Terra and its assets USTC as well as LUNC caused immense chaos in the market. While the community was just recovering from this ordeal, the fear around the collapse of another crypto project loomed over the industry. Sam Bankman Fried’s FTT token was making noise in the market and its falling price added to the fear.
The entire community witnessed the high-profile exchange of words between Binance’s Changpeng Zhao and FTX’s SBF. Amidst this, CZ affirmed that Binance would liquidate all its FTT holdings following “recent revelations.” While Binance kick-started its liquidation process, FTT recorded a massive plummet.
The decline of FTT certainly instigated fear in the community. Several went on to compare the latest set of events to the collapse of Terra. Star Xu, the founder of the prominent crypto platform OKX took to Twitter and shared his views about the Binance – FTX drama.
A few others warned the community of a potential bloodbath that would bring the market down.
Amidst this, several believed that FTX was headed toward bankruptcy. However, SBF denied insolvency rumors that were started right after Binance hinted at liquidation.
FTT drops to $17
Over the last couple of hours, the FTT token has taken various turns in terms of price. The asset plummeted to a low of $15.56 following a 20.85 percent daily drop. It should be noted that this was from a high of $23.15.
At press time, FTT was trading for $17.84. As seen in the above image, the asset witnessed a major plummet earlier today.
Additionally, Binance has only liquidated a part of its $500 million FTT holdings. Therefore, several in the community feared and questioned with the altcoin would survive the whole liquidation process initiated by Binance.