The value of the FTX platform token began to decline after Binance cryptocurrency exchange CEO Changpeng Zhao (CZ) said his company intends to sell its remaining FTT tokens within a few months.
"Due to the recent revelations that have come to light, we have decided to liquidate all remaining FTTs from our balance sheet," Zhao wrote on Twitter
FTX immediately offered to buy back these coins at a rate of $22. But Binance's CEO refused and said the tokens would be sold on the open market for several months, as planned.
According to Zhao, the liquidation of FTT is a risk management that takes into account the experience with the LUNA project. He said, however, that Binance does not support those who lobby for their own interests to the detriment of other industry players behind their backs.
FTX head Sam Benkman-Fried is known for being a supporter of strict regulation of the cryptocurrency industry and an opponent of decentralized services. In his opinion, regulators should focus on creating a unified framework that requires full disclosure in the global digital asset market.
Changpeng Zhao did not name specific actions by FTX that led to his decision to sell the tokens, and later said that there was no conflict between him and Sam Bankman-Fried and he did not think his words would be the "straw that broke the camel's back."
Following Zhao's announcement of the sale of Binance's FTTs, $1.2 billion worth of cryptocurrency was withdrawn from the FTX platform, according to analytics platform Nansen. At the same time, the exchange and its associated company Alameda are trying to replenish liquidity on the platform: during the same period, $540 million was put on it, resulting in a net outflow of $653 million.
In addition, ByBit exchange CEO ByBit accused FTX of violating the contract for not selling BIT tokens for 3 years: in 2021, Alameda transferred 3.36 million FTT into 100 million BIT. The ByBit DAO community suggested that the FTX exchange disclose where it stores BIT tokens, otherwise the DAO will dispose of FTT tokens at its discretion.