Binance CEO Denies the Blame as FTX Token FTT Price Tanks 32%

The native token used by exchange FTX exchange has plummeted by more than 30% in the last few hours. FTT was stable around $22 for the majority of yesterday. However, it started to plummet sharply during the morning of Tuesday's Asian trade session.

As of the time of the writing of this article, FTT was down 32% in less than four hours , and had topped out at $15, as per TradingView. FTT has since fallen 81% since its all-time high of September 2021 of just a little over $84.

FTX Token (FTT) Knocked Down, But Binance Not Fighting

https://twitter.com/WuBlockchain/status/1589819780047175680

Chinese journalist Colin Wu noted the move. He said the fact that 1.9 million FTT tokens, worth about $44 million had been transferred by the Genesis OTC Desk to FTX just 12 hours ago.

He also claimed that Binance did not deny selling. The company's CEO Changpeng "CZ" Zhao caused this latest controversy in the crypto space when he announced the closure of the company's FTT position.

https://twitter.com/cz_binance/status/1589695556909424640

The announcement was made on November. 6 according to as reported on BeInCrypto. The announcement triggered a wave of speculation on the possibility of bankruptcy for FTX and Alameda established by the Sam Bankman Fried.

The time was when CZ stated that it could take months sell off FTT tokens. FTT tokens due liquidity and market conditions. On his latest tweet about the topic on November. 8, he wrote:

“Funny memes, media & some people tried to color this as a “fight.” Sorry to disappoint, but I spend my energy building, not fighting.”

The Story So Far

The founder of W3T Inc., Alex Valaitis posted a few of the stories between the two crypto billionaires on November. 8.

https://twitter.com/alex_valaitis/status/1589711035132694528

Binance was a shareholder in FTX when it first came online in 2019. However the exchange founded by SBF grew rapidly. By 2021 Binance made the decision to withdraw from FTX in the $900 million round of funding.

SBF recognizes that to become the leader for crypto, the company must to convince authorities in the United States. He is a major political donor , and has already pledged more than 40 million dollars to crypto-friendly Democrat campaign and candidate during this election cycle.

Valaitis believed his theory that the two events opened FTX as well as SBF to be targeted through Binance or CZ. Bankman-Fried's propositions of a stringent set of regulations made him a logical to target.

Concerns about the Alameda's balance sheet being overrun with FTT tokens the company mints on its own prompted the sale and, at least, it seems. Valaitis stated his company's "offensive" had two impacts:

In November. 7 CZ almost confirmed the existence of an attack in the form of this tweet:

https://twitter.com/cz_binance/status/1589374530413215744

With FTT the price of its tokens currently falling and falling, it appears that the crypto swarm of 2022 isn't over. The overall market is responding with a 6% reduction in market capitalization in the last 24 hours.

This could play right into the control of global regulators which will make everyone lose at the end of the day.