FTX Reassures Investors As Binance Sells FTT Holdings

After Binance announced that it would begin liquidating its holdings of crypto exchange FTX’s FTT token, FTX CEO Sam Bankman-Fried tweeted that the exchange has enough to cover all client holdings, that it has been processing all withdrawals and that it will continue to do so. 

“A competitor is trying to go after us with false rumors,” Bankman-Fried said in the first tweet in a thread about this topic “FTX is fine. Assets are fine.” 

The posts came a day after a “public war of words” between Binance CEO Changpeng Zhao and Alameda Research CEO Caroline Ellison, CoinDesk reported Monday (Nov. 7). 

CoinDesk reported on Nov. 2 that the balance sheet of trading firm Alameda Research — which is a sister company of FTX — is “full of” the FTT token and that although there is nothing wrong with this, it shows that the trading firm is largely based on its sister company’s token. 

Zhao announced four days later that Binance would liquidate its holdings of FTT. 

“Due to recent revelations that have come to light, we have decided to liquidate any remaining on our books,” Zhao tweeted on Nov. 6. 

That same day, Ellison said in a tweet that mentioned Zhao: “If you’re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!” 

This news comes about two weeks after a report that FTX could soon have its own stablecoin. 

In an interview published on Oct. 27 by the French Web3-focused publication The Big Whale, Bankman Fried said the company is likely to create its own stablecoin without providing further details. 

“Yes, it is very likely,” he said in comments reprinted by multiple outlets. “We know how to create a stablecoin. We’re just thinking about the best partner to do it with.” 


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