FTX Token (FTT), the native cryptocurrency of crypto exchange FTX, has fallen another 20% in the past hour to below $20. At the time of writing, FTT is trading 19% lower at a price of $18.46 with a market cap of $2.4 billion.
The recent sharp drop means that FTT tokens lost more than $500 million in valuation in an hour. Also, the total erosion in the market value of FTX Tokens is close to a billion in the past four days.
Interestingly, crypto reported that Colin Wu has reported a massive transfer of FTX tokens (FTT) from Genesis OTT Desk to FTX. He also states that Binance is not behind the recent price drop. The analyst reported:
FTT suddenly fell 14% in 1 hour and SOL fell 14% in 24 hours. 1.9 million FTT ($44 million) was transferred from the Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not a Binance sale.
Over the weekend, Binance said it has decided to sell its remaining FTX Token holdings. The development comes amid recent anomalies surrounding the balance sheet of FTC and sister group Alameda Research. Binance has reportedly transferred half a billion worth of FTT tokens to its platform.
This news, followed by Binance action, has led to widespread skepticism for FTX, with analysts thinking it could be another LUNA-like event in the market.
Binance Clarifies FTX Token Episode
Several market enthusiasts said Binance has done this as part of its competition with FTX. However, CZ denies these allegations. He also spoke about the transfer of FTT tokens to Binance and said it was part of the liquidation process.
However, Binance definitely plans to liquidate FTT tokens in the coming months. Interestingly, Binance CEO has also rejected FTX’s token transfer offer. “I think we will remain in the free market,” he said.
On the other hand, FTX CEO Sam Bankman-Fried has stated that their books are clean, regulated and financially audited.
Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
This post FTX tokens fuel another 20% loss of $500 million per hour
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