- Binance CEO Changpeng Zhao announced that his exchange is liquidating all FTX (FTT) tokens from its books.
- Bianance received $2.1 billion in BUSD and FTT by exiting FTX capital last year.
- Changpeng Zhao pointed out that this move is not a move against a competitor.
On previous occasions we have already mentioned how changeable the world of digital assets can be, due to various factors that cause the prices of tokens to rise or fall, or the participation of new actors or services in the ecosystem among multiple variants.
An example of this changing world is what the digital asset exchange house is recently doing, Binance since its executive directorChangpeng “CZ” Zhao recently noted via his Twitter account that his exchange is liquidating its holdings of FTT, the native token of rival exchange FTX.
The reason CZ gave was: “Due to the recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books.”. However, the CEO of Binance did not mention any further details about it.
As CZ pointed out, Binance was an early investor in FTX and the FTT tokens Binance held are part of the $2.1 billion in BUSD (Binance stablecoin) and FTT the exchange received as part of its exit. in 2021, of an initial capital position in FTX that he had had for three years, that is, since 2019.
As part of the Twitter thread, CZ noted that they expect this process to be done in a way that minimizes the impact on the market and that they expect the process to take a few months to complete due to current market conditions and limited liquidity.
Binance: “We are not against anyone”
This decision comes after weeks of criticism of Sam Bankman-Fried, founder and CEO of FTX, for a series of regulatory initiatives which he presented through a publication on his official blog, where, in addition, he advised making some restrictions regarding Decentralized Finance.
As part of his statements on Twitter, the CEO of Binance assured that the decision is not intended to harm other companies, since “Binance always encourages collaboration between industry players”. However, they do not want to be involved in pressure against other firms or actors in the crypto environment.
“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we do not intend to make love after the divorce. We are not against anyone. But we will not support people who lobby other industry players behind their backs.”, indicated CZ. “It is not a move against a competitor. Our industry is at its peak and every time a project publicly fails, it hurts all users and all platforms”.
Similarly, shortly after the announcement, The CEO of Binance acknowledged that the FTT of 22,999,999 that was transferred to Binance on November 5, was part of the exit movement of the FTX token from its exchange.
Binance, one of the first investors of FTX
As we pointed out earlier, Binance was one of the first companies to launch as an investor in FTX and although the amount of the initial investment is still unknown, Zhao pointed out in an interview with the magazine Forbes at the time of Binance’s departure, that he and his company had seen tremendous growth:
“We’ve seen tremendous growth from them, we’re very happy with that, but we’re completely out of it,” CZ stated.
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