Binance has announced it’s selling off all its FTX Token (FTT) as rumors swirl that the global crypto exchange FTX could become insolvent.
In a Twitter thread, Zhao details how last year, Binance decided to sell its equity in FTX, receiving billions in stablecoins and the exchange’s native token FTT.
Now Zhao, who heads the largest crypto exchange in the world by volume, says Binance is getting rid of the assets received in the exit with “revelations” coming to light.
“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.”
FTX is facing rumors and speculation that it may be insolvent and is relying far too heavily on holdings denominated in FTT, although the exchange strongly denies it.
In addition to concerns about insolvency, Zhao says FTX has also engaged in lobbying against others in the crypto industry.
“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.”
FTX has long been known as one of the biggest donors to politicians in Washington, but specifics on the types of policy discussed – including anything regarding Binance – are not known.
Zhao says Binance will be liquidating its FTT in a way that minimizes market volatility, rather than a single market order sell.
“We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete.
Binance always encourages collaboration between industry players. Regarding any speculation as to whether this is a move against a competitor, it is not. Our industry is in its nascency and every time a project publicly fails it hurts every user and every platform.”
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