The CEO of Binance, Changpeng Zhao stated that the company will liquidate the entirety of its position in FTX Token the native token of FTX. Zhao said the decision was made after recent revelations that came to light.
CZ explained the FTT liquidation was just post-exit risk management, referring to lessons learned from the fall of Terra’s Luna Classic and how it impacted market players.
Binance’s decision to liquidate the token is due to reports surrounding a recently leaked balance sheet from Sam Bankman-Fried-founded Alameda Research, which alleges billions of dollars worth of Alameda’s assets are tied up in FTX’s token.
Alameda Research CEO Caroline Ellison, said the balance sheet wasn’t reflective of the true story, noting that the sheet in question is only for a subset of corporate entitiesand other assets worth over $10 billion were not reflected there.
Zhao didn’t state how much FTT Binance would sell but revealed the exchange held around $2.1 billion United States dollar equivalent in Binance USD. He added Binance would try to sell the tokens in a way that minimizes market impact stating he expects the token sales to take “a few months to complete.
