Crypto Prices Crash on FTX Insolvency Rumors – 3 Coins to Buy the Dip
Cryptocurrency prices plummeted amid reports of FTX bankruptcy. Changpeng Zhao, the founder and CEO of Binance, the world's largest cryptocurrency exchange, announced on Sunday that his trading platform is about to sell its stake in FTT, a competitor platform to FTX's native asset.
Given that Binance CEO Changpeng "CZ" Zhao is selling off the native coin, FTT, he mentioned "new disclosures that have come to light," but he made no further public mention of them or responded to questions about them.
In a subsequent tweet, Changpeng Zhao stated that the FTT liquidation was "merely post-exit risk management," citing the lessons learned from Terra Luna Classic's (LUNC) collapse and the impact it had on market participants.
"We will not assist persons who advocate against other industry participants behind their backs," he added.
However, Binance's decision may have been influenced by a recent balance sheet statement from Sam Bankman-Alameda Fried's Research. According to this statement, Alameda's assets are worth billions of dollars and are linked to the FTX coin.
For weeks, Sam Bankman-Fried, the CEO and creator of FTX, has been chastised for legislative suggestions he made in an earlier piece that recommended restrictions on DeFi. These criticisms have been addressed by Changpeng Zhao. He has since promised to reconsider his stance on legislation. Meanwhile, Binance purchased the FTT funds last year as part of its exit from an earlier equity investment in FTX that it had held since 2019.
According to Zhao, FTX paid $2.1 billion in FTT and BUSD, the stablecoin that is only available on Binance's market, for Binance's stake in the company. Changpeng Zhao predicted that due to market conditions and a lack of liquidity, the
Read more on cryptonews.com
