{"id":69701,"date":"2022-11-08T11:37:19","date_gmt":"2022-11-08T09:37:19","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69701"},"modified":"2025-09-07T21:39:27","modified_gmt":"2025-09-07T18:39:27","slug":"ftx-token-falls-nearly-30","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ftx-token-falls-nearly-30\/","title":{"rendered":"FTX Token Falls Nearly 30%"},"content":{"rendered":"<p>Over a few hours, FTT, the utility token of the FTX exchange, fell about 28%\u2014from above $22 to below $16.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/FIc086Gm833ytWwh9lr4tcjbaH7LQyNj294F13eGIkYt7vpDInQZVaY6lcViCM3q9yCd5_b4y57Fcr5c4CGZXKFQiti7hcq1WHFht4dakfX9XmQ1YgxGbQNy3HBdr3xi7H05h0cqm6CbJVNLPXqPsvXiw_l6NeJitnZTatrFf_w44OgkyqEryh4jY3YdgQ\" alt=\"FTX token falls nearly 30%\"\/><figcaption>Hourly FTT\/USD chart for FTX. Data: TradingView.<\/figcaption><\/figure>\n<p>The price drop occurred amid the ongoing standoff between FTX and Binance, and concerns about the financial health of the exchange led by <a href=\"https:\/\/u1f987.com\/en\/news\/who-is-sam-bankman-fried\">Sam Bankman-Fried<\/a>.<\/p>\n<p>At the same time, Bitcoin slipped below the $20,000 level, dragging the rest of the market lower. FTX token\u2019s decline was the deepest among top-50 assets by market cap.<\/p>\n<p>On November 6, Binance CEO Changpeng Zhao said the company aimed to divest from FTT. Assets, together with BUSD, totalled about $2.1 billion as a result of the company\u2019s exit from its stake in FTX.<\/p>\n<p>He stressed that the move was not aimed at a competitor, as Binance regards maintaining resilience in the developing industry as important. The reason cited were \u201crecent revelations.\u201d<\/p>\n<p>Presumably, he was referring to the investigation in CoinDesk, which disclosed details of Alameda Research\u2019s balance sheet, closely linked to FTX.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;All want greater transparency in our industry, right? My tweets were simple. There were questions about a large ($580 million) FTT deposit on Binance, and we openly stated that we were closing that position&#8221;, \u2014 commented Zhao on the ensuing discussion.<\/p>\n<\/blockquote>\n<p>CEO of Alameda Research Caroline Ellison stated readiness to <a href=\"https:\/\/u1f987.com\/en\/news\/alameda-research-says-it-would-buy-ftt-from-binance-at-22-per-token\">buy back FTT from Binance<\/a> at a price of $22.<\/p>\n<p>When asked to comment on Zhao\u2019s proposal, she asked:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Do they have or will they buy $580m of BNB?&#8221;<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">They have or will buy $580m of <a href=\"https:\/\/twitter.com\/hashtag\/BNB?src=hash&#038;ref_src=twsrc%5Etfw\">#BNB<\/a>?<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589696820275425281?ref_src=twsrc%5Etfw\">November 7, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, he rejected the suggestion that Binance would offer Alameda to buy BNB in order to swap it for FTT.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;I didn\u2019t say that. It was a question, not a commitment. I think we will stay in the free market&#8221;,<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">I didn\u2019t say that. It was a question, not a commitment. I think we will stay in the free market. <\/p>\n<p>We still hold LUNA (now LUNC) today. \ud83d\ude02<\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589703098762940416?ref_src=twsrc%5Etfw\">November 7, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Initially Zhao assured that Binance would complete the sale over coming months to minimize market impact.<\/p>\n<p>He again emphasised that the decision to close the FTT position was not aimed at a competitor. The head of Binance also linked to a thread by analyst Miles Deutscher, in which warning signs about Alameda and FTX\u2019s financial position were laid out.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">The fact that it sparked such levels of \u00abdiscussions\u00bb was surprising. There were also conspiracy theories that I somehow orchestrated this whole thing. If you read this thread, you would appreciate that no one can orchestrate this. 3\/4 <a href=\"https:\/\/t.co\/CV2QwC7Umr\">https:\/\/t.co\/CV2QwC7Umr<\/a><\/p>\n<p>\u2014 CZ \ud83d\udd36 Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1589695561678344192?ref_src=twsrc%5Etfw\">November 7, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">November 8, 2022 | 14:56<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>Arcane Research analysts noted that after the July decision by the commission, in bitcoin pairs, Binance increased its share in both the spot market and derivatives trading. Much of this was driven by FTX.<\/p>\n<p><script async=\"\" src=\"https:\/\/telegram.org\/js\/telegram-widget.js?21\" data-telegram-post=\"forklog\/28374\" data-width=\"100%\"><\/script><\/p>\n<p>Experts at Scoop Protocol estimated that in the last week about 20% of all deposits on Binance came from FTX (~$1.17 billion).<\/p>\n<\/div>\n<p>Discussing the sale of FTT, in one of Zhao\u2019s tweets he gave a hint about the token\u2019s possible fate, noting that Binance still owns LUNA (now LUNC) <a href=\"https:\/\/u1f987.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\">the Terra collapse<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If unfortunately FTX becomes another LUNA, nobody in the industry can benefit from the incident, including Binance. Both customers and regulators will lose some confidence in the entire industry. I hope Zhao will consider stopping the sale of FTT and striking a new deal with SBF&#8221;, \u2014 said OKX founder Star Xu.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">If unfortunately FTX becomes another LUNA,nobody in the industry can benefit from the accident including Binance. Both customers and regulators will lose some confidence about the whole industry .I hope CZ can think about stop to sell FTT and make a new deal with SBF.<\/p>\n<p>\u2014 Star (@starokg) <a href=\"https:\/\/twitter.com\/starokg\/status\/1589861637271715840?ref_src=twsrc=twsrc_fw\">November 8, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In July 2021, FTX, following a Series B funding round, raised $900 million.<\/p>\n<p>The deal provided the resources for Binance to repurchase shares in the platform for an undisclosed amount that it had invested in the platform in December 2019.<\/p>\n<p>Subsequently, Bankman-Fried explained the \u201cdivorce\u201d from Binance as a difference in business approaches.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our Telegram \u2014 cryptocurrency news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over a few hours, FTT, the utility token of the FTX exchange, fell about 28%, from above $22 to below $16.<\/p>\n","protected":false},"author":1,"featured_media":69702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,1236],"class_list":["post-69701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-ftx"],"aioseo_notices":[],"amp_enabled":true,"views":"43","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69701"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69701\/revisions"}],"predecessor-version":[{"id":69703,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69701\/revisions\/69703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69702"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}