The CEO of cryptocurrency exchange Binance, also known as CZ Binance appeared uninterested in Alameda Research’s offer to purchase Binance’s FTX Token FTT holdings.
Binance CEO reacted on Twitter on November 7 to an inquiry asking if he would accept Alameda Research CEO Caroline Ellison’s offer to purchase Binance’s FTT holdings for $22 per token. “I believe we will remain in the open market,” stated Zhao.
On November 6, Zhao announced that Binance will be selling its FTT holding owing to “post-exit risk management” as part of “learning from LUNA.” Ellison’s offer followed Zhao’s announcement.
At the time, Zhao stated that he would attempt to sell the tokens in a manner that “minimizes market impact” and that the token sales would take “a few months” due to the exchange’s stablecoin Binance USD (BUSD) and FTT owning around $2.1 billion USD equivalent.
Concerns have been raised that rumors around Alameda’s finances, Binance’s anticipated FTT liquidation, and Zhao’s comments could be the impetus for significant withdrawals from FTX, with purported data from Nansen indicating $451 million worth of stablecoins leaving the exchange.
Consumers complained about long wait times on Twitter on November 7, and FTX responded by assuring users that everything was operating well.
Sam Bankman-Fried also laid the finger at an anonymous “competitor” on November 7, stating, “A competitor is spreading false stories about the cryptocurrency exchange.”
Zhao has emphasized that he is not engaged in a “battle” with FTX or Bankman-Fried, tweeting on November 7: “I spend my energy growing, not fighting” and attempting to refute “conspiracy theories” that he “somehow engineered this entire situation.”
Analysis on November 7 indicated a bearish pattern that might result in a 30% decline in FTT, and early on November 8, the FTT price plummeted from $22 to roughly $15.40 and is currently down 29.5% in 24 hours as of this writing.
