Amid Huge FTT Liquidations, FTX Chief Assures Withdrawals Are Working Fine

On Sunday, November 6, Binance chief Changpeng Zhao announced that the exchange would be dumping all FTX tokens (FTT). Binance took an exit from FTX equity last year as a result of which it received $2.1 billion in cash.

Soon after CZ made the announcement, the FTX token price came under severe pressure. As of press time, FTT is trading 6% down at a price of $22. The native cryptocurrency of the FTX exchange has lost 20% over the last week. In a sharp message on Twitter, CZ said:

“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards”.

Following the withdrawals from Binance, other players have also joined in. As per data from PeckShiled,

Jump Trading has withdrawn about 40.4 million USDC from FTX in the past 24 hours. About $109.8 million worth of cryptocurrency has been transferred from FTX to crypto lending platform Nexo, including 56,432 ETH and about $13.9 million in stablecoins.

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FTX Chief Addresses the Rumors

There have been controversial reports floating with FTX exchange and its sister concern Alameda Research. The controversy notes: “Both these firms have different businesses but the balance sheet of Alameda research shows significant amount of unlocked FTT token worth nearly $3.66 Billion out of total $14.6 billion”.

The controversy is surrounding the illiquid tokens which Alameda Research has been showing on its balance sheet. Hence these major liquidations in the market. Note that both these firms are owned by Sam Bankman-Fried.

In his latest Twitter thread, SBF has come clean addressing the rumors in the market. He said that FTX and its group of companies are highly regulated and that they keep all audited financials. However, he said that FTX users need not panic as all the withdrawals are working fine.

We’ve already processed billions of dollars of deposits/withdrawals today; we’ll keep going. (Taking up anti-spam checks to process more–sorry if you got those. We’re hitting node rate capacity, will keep going.) Also tons of USD <> stablecoin conversions going on.

He also thanked all their supporters who continued to stay with the exchange.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards 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 free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.