We are now seeing a moment between the leading cryptocurrency exchanges Binance and FTX, which has the potential to play a very important role in the direction that the cryptocurrency market is moving in at the moment. Binance CEO CZ is said to have turned down Alameda Research CEO Caroline Ellison’s offer to purchase the FTT tokens that Binance plans to sell in the near future at a price of $22 per unit.
CZ got confused about whether Alameda is offering to buy $580 million worth of BNB tokens when a user on Crypto Twitter (CT) asked if CZ plans on taking Alameda up on their offer to close the position over-the-counter to avoid further market impact. Alameda has offered to close the position over-the-counter.
Binance made the announcement on Sunday that it is going to liquidate the remainder of the FTT tokens it acquired from the company the previous year as part of Binance’s withdrawal from FTX ownership. Binance will attempt to sell the tokens in a manner that will minimize the effect on the market.
CZ subsequently elucidated that they would continue to operate in the open market and that there are now no intentions to accept Alameda’s offer.
“I didn’t say that. It was only an inquiry and not an assertion of any kind. I believe that we will continue to participate in the free market. CZ retorted, “Yes, LUNA (now LUNC) is still being held today.”
Even additional comments regarding the matter have been provided on the Binance CEO’s Medium page, in which he denies that there is any form of conflict with anybody.
CZ stated that he posted about the liquidation of FTT tokens in a hurry to remain transparent with the community because there was a lot of confusion going on about who transferred 30 million FTT tokens to a wallet on the Binance exchange. CZ stated that he posted about the liquidation of FTT tokens in a hurry because he wanted to remain transparent with the community.
However, CZ had no idea that this would turn out to be the “final straw” that caused the camel’s back to buckle.
CZ acknowledged that there were also conspiracy theories that he orchestrated this whole thing and noted no one can orchestrate such a situation.
Denying allegations of any sort of fit, CZ tweeted, “Sorry to disappoint, but I spend my energy building, not fighting. Today I spent my day on our business & our community. I suggest others do the same. Back to building.”
CryptoQuant CEO Ki Young Ju tweeted that FTX currently has $104.9 million worth of stablecoins in its on-chain reserves. He reported a figure of just $51 million, a 93% decline over a two-week period and a yearly low.
Another CT user quoted these figures asking how Alameda is going to buy the remaining FTT tokens from Binance when they have no money at all. CZ replied to that user with a shrugging emoji.
“Make love (and blockchain), not war,” was the message that FTX CEO Sam Bankman-Fried, also known as SBF, sent in response to CZ’s heated thread on Twitter.
Later on, he wrote another message as fear, uncertainty, and doubt (FUD) was growing on FTX and Alameda Research was approaching bankruptcy. This caused users to worry, and they hurried to remove their funds from the exchange.
“A rival company is spreading untruths about us in an effort to take us down. FTX works quite nicely. It was revealed by SBF that the assets were in good shape.
SBF made the observation that FTX has sufficient resources to cover all customer holdings, and the company does not even invest client money in treasuries. All withdrawal requests have been processed by FTX, and this practice will not change.
SBF assuaged the users’ concerns by assuring them, “We have a long history of safeguarding client assets, and that remains true today.”
SBF then noted that CZ, the CEO of Binance, has stated that he would be thrilled if they could collaborate for the benefit of the ecosystem.
While FTX was losing deposits left and right, Binance was able to increase its exchange inflows by around $411 million within the same time period.
The price of the FTT token, which is FTX’s native token, has taken a series of losses as a result of the news made by Binance and is now trading at $15.64 at the time of this writing.
Due to the current crypto cold, the next few days will be very important for both FTX and Alameda Research. This is because the ongoing crypto winter does not aid their case in any way. Let’s wait and watch whether they will recover or if we will see another collapse similar to what happened on Terra.
Compiled by Coinbold