FTX token plunges 12% because of Binance exchange

Binance exchange announced that it will sell its FTT token holdings and this news acted as a catalyst to create fear among the FTT token holders.

FTX token (FTT) is a native token of the FTX crypto exchange. FTX exchange is a second-ranked crypto exchange in the crypto sector, in terms of 24 hours global crypto trade volume on this platform. At the time of writing this article, the price of the FTX tokens is $21.17 and this price is 6.10% low than the last 24 hours’ trade price.

It is worth noting that the last 24 hours’ high was $24.82 while the low was $21.73. In short, FTT plunged suddenly 12.45% within minutes but further grabbed stability.

That sudden downfall in the price of FTX tokens happened because of the Binance exchange. On 6 November, Changpeng Zhao, CEO of Binance exchange, informed his Twitter followers that Binance exchange is holding $2.1 Billion worth of BUSD & FTT and now the exchange decided to sell the FTT coin holding.

“As part of Binance’s exit from FTX equity last year, Binance received roughly USD 2.1 billion equivalent in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books,” Zhao said.

At the same time, Zhao confirmed that it may impact the market of FTT financially so the exchange will liquidate it slowly and it will take a few months.

Further Zhao added that the exchange has no intention to impact the other rival crypto companies because impact/outage in service of any crypto projects equally impacts other crypto platforms badly, so Binance aimed to take steps in a supportive way without harming other rival companies.

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