- Changpeng Zhao announced that Binance would be liquidating all of its FTT holdings.
- Zhao confirmed that the move was a part of Binance’s plan to exit from FTX equity.
- Binance held FTX tokens and BUSD worth $2.1 billion.
Changpeng Zhao, the CEO of Binance, recently announced that the crypto exchange would be liquidating all of its FTT holdings, the native token of exchange FTX. The CEO confirmed that the move was a part of Binance’s plan to exit from FTX equity last year.
Zhao said the decision was made soon after some recent revelations came to light. Liquidating the FTX tokens have been a part of the exchange’s post-exit risk management, hinting at lessons from the Terra Luna Classic (LUNC) crash and how it impacted the market players.
Notably, the announcement comes after concerns over Sam Bankman Fried’s company Alameda Research’s financial stability arose following a leaked balance sheet review that revealed the firm owned $5.8 billion worth of FTT tokens as of June 30, 2022 (including FTT tokens pledged as collateral).
Zhao further added:
We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete
However, Zhao didn’t say how much FTT Binance would sell, but he did mention that due to the exchange’s withdrawal from FTX equity last year, it has about $2.1 billion worth of FTT and Binance USD (BUSD), Binance’s stablecoin.
Soon after, the CEO of Alameda Research Caroline Ellison tweeted in response to the accusations that Alameda had over $10 billion in assets that were “not reflected” on the leaked balance sheet.
In correspondence to Zhao’s tweet, the CEO of FTX Sam Bankman Fried replied:
I was going to write a different thread, but I took a deep breath and reminded myself of something we’d all do well to remember: that we’re all in this together, and I wish the best to ‘everyone’ driving the industry forward
While concluding the tweet, Bankman Fried said that he doesn’t care if others reciprocate or if they employ different strategies, He respects the crap out of what they have done to create the industry as it is now, including CZ.
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