FTX’s FTT Token Crashes 78% in 24 Hours, Bitcoin Hits Yearly Low

 FTX’s FTT Token Crashes 78% in 24 Hours, Bitcoin Hits Yearly Low

FTT is hemorrhaging worth, crashing 78% prior to now 24 hours from roughly $22 to $4.87, in response to data from CoinGecko.

The FTX token reached a low of $3.12 Tuesday earlier than rising barely to above 4 {dollars} after which again to roughly $5.48 at time of writing. FTT is down almost 93% from its all-time excessive of $84 in September of final yr.

Bitcoin, the biggest cryptocurrency by market cap, isn’t doing too effectively both. BTC is down almost 10% prior to now day, hitting a brand new yearly low of $17,579, per CoinGecko data.

BTC has fallen 73% from its all-time excessive of simply over $69,000 in November 2021. BTC beforehand fell beneath the $18,000 mark earlier this yr, slipping to $17,772 again in June.

The plummeting value of FTT comes as each Binance CEO Changpeng “CZ” Zhao and FTX CEO Sam Bankman-Fried confirmed Tuesday that Binance would purchase FTX because the latter confronted a “significant liquidity crunch.” 

Simply days in the past, CZ shared that he was promoting all of Binance’s holdings of FTT, value a minimum of $500 million

“On account of current revelations which have got here to mild, we’ve determined to liquidate any remaining FTT on our books,” CZ stated Sunday, with out disclosing precisely what the “revelations” have been.

“We’ll strive to take action in a manner that minimizes market affect. On account of market situations and restricted liquidity, we count on this may take a couple of months to finish,” he added.

Regardless of CZ’s expressed need to reduce the affect of Binance’s FTT selloff, it’s nonetheless seemingly this preliminary announcement affected the value motion of FTT. CZ denies inflicting any of FTX’s monetary turmoil.

“There have been additionally conspiracy theories that I someway orchestrated this complete factor,” he wrote on Twitter Monday of FTX’s current troubles. “If you happen to learn this thread, you’d respect that nobody can orchestrate this.”

CZ later supplied a bit extra context on why Binance was promoting its FTT, calling it “post-exit danger administration.” 

He additionally stated that he “received’t assist individuals who foyer towards different trade gamers behind their backs.” Such an announcement could possibly be a reference to Bankman-Fried, who is thought for being a crypto advocate in Washington D.C. SBF’s Alameda Analysis donated $6.2 million to Biden’s prior marketing campaign, and FTX.US donated $5.2 million.

It’s value noting that Binance and FTX’s U.S. counterparts don’t but look like concerned within the acquisition deal as Binance plans to tackle FTX’s worldwide arm.

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