The stablecoin for FTX, FTT, (1) is presently trading at around $15, following a sharp decline during the last hour. Following Binance's announcement that it will sell its token holdings, there has been a dramatic fall. The price of FTX's FTT token, a cryptocurrency, has decreased significantly during the last hour.
The Fall in price
According to statistics by CoinGecko (2), the token's price dropped 19%, from about $22 to under $15, just after 10:00 p.m. ET. The announcement coincides with a high-profile stalemate between FTX and Binance, two of the biggest exchanges in the cryptocurrency market. Following "recent findings," Binance CEO Changpeng Zhao said in a tweet on November 6 that the exchange will start offloading its FTT holdings.
He was alluding to a CoinDesk article published earlier described Alameda Research's balance sheet in full. Sam Bankman-Fried, who runs FTX, owns the cryptocurrency trading company Alameda. Sam Bankman-Fried, CEO of FTX, attempted to calm the market following Zhao's remarks. He declared the exchange "OK" yesterday and urged FTX and Binance to collaborate for the industry's benefit. For $22 per token, Alameda CEO Caroline Ellison offered to purchase Binance's FTT holdings.
What could happen due to such a drop?
The price of Solana and FTT may emerge as the most significant data points for tracking the course of the cryptocurrency market this week, according to a letter from market maker B2C2 that was issued on November 7. Traders in the market are worried that Alameda, which has billions of dollars worth of the token on its balance sheet, might suffer if the price of FTT drops.
Such a reduction may affect FTX, the exchange to which it is connected. The company has already experienced withdrawal issues. The withdrawals wait, according to a recent tweet from FTX, "is diminishing and coming back to more respectable levels; nodes and banks are catching up." By 10:40 p.m. ET, FTX had been reached for comment but had not returned.