In the past day, FTT, the native token of FTX, one of the biggest cryptocurrency exchanges, has been under pressure and fallen more than 10%. The announcement that 23 million tokens, or $580 million, had been transferred to the Binance market may be the cause of the significant sell-off of FTT by investors. Rumors in the cryptocurrency community suggest that this volume represents Binance's unlocking investment in FTT.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 22,999,999 #FTT (584,818,174 USD) transferred from unknown wallet to #Binance https://t.co/Nm2jz9MKW0 — Whale Alert (@whale_alert) November 5, 2022
The transfer of the $500 million FTT bag to Binance—possibly by the exchange itself—is more of a result than a cause. It all started with a recent inquiry into the financial holdings of FTX and its associated trading company Alameda Research.
Alameda Research: Is it Bankrupt?
Without getting into the specifics of the study, it demonstrates the weakness of Alameda's balance sheet, which states that FTT is the company's largest asset and is used to borrow money from creditors. The CEO of Binance, Changpeng Zhao, also tweeted his support for the probe.
NEW: "IS ALAMEDA RESEARCH INSOLVENT?"
According to a recent leak, the firm's finances rely on the same scheme that destroyed Celsius Network. Will it work out differently for SBF? 🧵👇https://t.co/gs4mQ7ul14 — DIRTY BUBBLE MEDIA: THE ALAMEDA SPECIAL (@MikeBurgersburg) November 4, 2022
According to renowned crypto journalist Colin Wu, it's possible that the claim that Binance will dump FTT is untrue. The writer hypothesizes that the exchange might have simply moved all of its tokens to a single address once some of its investments were unlocked.
