Tensions between Binance and FTX caused the Crypto market to crumble

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(Edited)

It started with private financial document reviewed by CoinDesk. Though I did not fully understand what is the meaning of this finanal document fully, I can vaguely understand that this is not a good thing for FTT token. You can see the statement below.

The financials make concrete what industry-watchers already suspect: Alameda is big. As of June 30, the company’s assets amounted to $14.6bn. Its single biggest asset: $3.66bn of “unlocked FTT.” The third-largest entry on the assets side of the accounting ledger? A $2.16bn pile of “FTT collateral.”

There are more FTX tokens among its $8bn of liabilities: $292mn of “locked FTT.” (The liabilities are dominated by $7.4bn of loans.)

from ft.com

So FTT is the native token for FTX exchange and you will gain some perks if you use FTT in FTX exchange. I think it is like BNB that Binance circulated. Binance is the no 1 crypto exchange by 24 hour volume and Ftx is in third place. So it is natural that he want to make a stir when he got a chance. Maybe he no longer trust FTX.

After the leakage of Alameda Research balance sheet people worried over the situation of FTX. News said that at 8-Nov-2022 FTX halted withdrawl and neogiate with Binance to buy FTX.com.

But before this(I think0 CZ (CEO of Binance) tweeted that he will dump all of FTT tokens in his possession slowly. News said that it is more than 500 millions worths.

image.png
from ft.com

What is the relationship between Alameda Research and FTT tokens?

FTX Chief Executive Sam Bankman-Fried owned Alameda Research. So people alerted because of spreadhsheet.

I did not really understand the review of CoinDesk but I can sense that something fishy there. But the tweet of CZ make the price of FTT fall. Maybe CZ wanted to make a huge blow on FTX. But FTX can not handle this blow and rumors are spreading Binance will buyout FTX. This makes the market to more unstable.

This also impact the world world of ctypto and so do to the Hive.

Sources - from learnbybit, from marketwatch and from ft.com

Posted using Neoxian City

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But FTX can not handle this blow and rumors are spreading Binance will buyout FTX. This makes the market to more unstable.

My struggle has been to understand why this is such a bad thing 💁‍♂️

Posted Using LeoFinance Beta

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This is actually affecting the crypto market. There is a fomo that they will lose their money.

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