SNEAK PEEK
- Changpeng Zhao,( co-founder, and CEO of Binance) has said that his company got approximately $2.1 billion in FTX Token (FTT) and Binance USD (BUSD) from competing for crypto exchange FTX.
- According to the cryptocurrency millionaire, Binance would sell the FTT tokens it has been holding for almost a year. For the support of the largest cryptocurrency exchange in the world based on trading volume, FTX provided the tokens.
- Changpeng Zhao, CEO of Binance, cited “recent findings” as the cause of the liquidation and warned that given the size of its holding, the selling of its tokens would take months to complete.
Changpeng “CZ” Zhao, the CEO of Binance, declared on Sunday that the cryptocurrency exchange is selling its ownership of FTT, a native asset of a rival exchange called FTX. Zhao said that the decision was made in response to the most recent revelations, which were made public in a tweet on November 6.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Sam Bankman-Fried, the creator and CEO of FTX, received criticism for proposed legislation he posted in a blog post suggesting restrictions on decentralized finance (DeFi). Since then, he has vowed to alter his regulatory philosophy.
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.
— CZ 🔶 Binance (@cz_binance) November 6, 2022
In a later tweet, CZ clarified that the FTT liquidation was “simply post-exit risk management,” alluding to the knowledge gained from Terra’s Luna Classic’s (LUNC) demise and the effects it had on market participants.
– the balance sheet breaks out a few of our biggest long positions; we obviously have hedges that aren’t listed
— Caroline (@carolinecapital) November 6, 2022
– given the tightening in the crypto credit space this year we’ve returned most of our loans by now
According to Alameda Research CEO Caroline Ellison, who stated as much in a tweet on November 6.
The balance sheet is solely for “a portion of our corporate companies,” and additional assets worth more than $10 billion “aren’t shown there,”
Yes, this is part of it. https://t.co/TnMSqRTutr
— CZ 🔶 Binance (@cz_binance) November 6, 2022
“We won’t assist individuals who lobby against other business players behind their backs, he continued.
In conjunction with its release, Binance received the funds in FTT from an initial ownership position in FTX that it had held since 2019. The departure happened a year ago. Zhao said in a statement that FTX has acquired Binance’s stake in the company for $2.1 billion in FTT and BUSD, the stablecoin that is only available on Binance’s market.
CZ predicts that the market conditions and a lack of cash will make it take many months to complete the disposal. Additionally, he added, it will be carried out in a way that would try to minimize the impact on the market for FTT.
