- FTT price lost its critical support at $21.6 on Monday to decline to $17.9.
- The ongoing Alameda and FTX controversy picked up heat after Binance's decision to sell its FTT holding.
- The consistent panic sell-off has led to the crypto community labeling the current situation as a possible bank run.
FTT price noted a further decline on Monday after the Alameda balance sheet controversy intensified following Binance CEO Changpeng Zhao and Sam Bankman-Fried's(SBF) comments. Along with FTX’s exchange token FTT, Solana price noticed a massive nosedive on November 8.
Adding liquidity to FTX & Alameda’s woes
Many traders are speculating that Alameda, FTX’s sister company, might be pulling liquidity on FTX pairs.
Hsaka, a well-known trader and influencer, tweeted the possibility of Alameda pulling liquidity for spot pairs.
Looks like Alameda decided to stop providing more exit liquidity? pic.twitter.com/8wy7DOBqJY— Hsaka (@HsakaTrades) November 8, 2022
FTX exchange’s native token FTT, seems to be on a freefall registering a 38% drop in the last 48 hours. Solana, another token closely associated with SBF, has dropped 32% in the same period.
FTT, SOL, BTC, ETH percent change
CZ vs. SBF controversy continues
While CoinDesk's revelations came approximately a week ago, most of the market reacted only after Binance CEO CZ's tweets. CZ mentioned that his company would be selling off all its FTT holdings, further justifying the move as risk management. He tweeted,
"Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards."
Regardless, FTX's CEO, Bankman-Fried continues to reassure the community that FTX and all its assets are fine. He appealed to CZ to work together for the crypto community.
Although the billionaire assures investors about balance sheet concerns, investors are already panic selling their holdings. If this story continues to develop in the direction that it is going, the crypto markets could witness the third biggest implosion after Terra-Luna, lending platforms and Three Arrows Capital.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.