Crypto Daily: Binance to liquidate its entire FTT holdings, DOGE is up 105.8%

Nov 07, 2022
03:11
2 min reading

Choise.com team

Crypto Daily: Binance to liquidate its entire FTT holdings, DOGE is up 105.8%

Binance CEO Changpeng Zhao “CZ” made an announcement late Sunday that the company would sell the remaining FTX’s FTT tokens on its balance sheet.

“As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion equivalent in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books,” he wrote in a tweet.

As for the timeline of this sale, CZ stated that it will be spread out over a period of several months in order to limit the impact on the market.

Zhao’s announcement is significant because it comes after several rumors about the health of Bankman-Fried’s trading firm, Alameda Research. The leaked balance sheet showed that Alameda owned around $5.8 billion worth of FTT tokens, including the ones pledged as collateral as of June 30. The sheet revealed that the firm had $14.6 billion in assets, and $8 billion in liabilities, including $7.4 billion worth of unidentified loans.

Following the news, the Chief Executive of Alameda Research, Caroline Ellison, stated that the firm had $10 billion in assets which were not reflected in the leaked document. She also added that Alameda Research had already returned a significant chunk of its outstanding loans.

Caroline Ellison also offered to purchase the remaining FTT tokens from Binance at a price of $22, adding that this would help minimize the market impact of such a large sale as well.

Potential impact

Saturday saw 22,999,999 FTT tokens, worth $585 million at the time, be transferred from a wallet to the Binance exchange, according to data from EtherScan. This number was equivalent to nearly 17% of the circulating supply of FTT tokens. Zhao later confirmed that the shifting of the funds was part of Binance’s strategy to liquidate its FTT position.

Zhao added that the decision to liquidate its FTT position was not a potshot at one of its competitors. However, users speculated that such a large-scale selling of the FTT token could have a considerable impact on the loans backed by the FTT token.

“Looks like CZ is slowly dumping $500M worth of FTT on the market. If he continues, many of Alameda’s FTT-backed loans will be liquidated, causing a death spiral. Let the party begin!”

Dogecoin continues its rally

Meanwhile Dogecoin (DOGE) is still benefiting from high levels of interest brought about by the completed Twitter purchaseof Elon Musk. Dogecoin is sitting on a 105.8% price surge during the last two weeks. Its month-to-date performance remains impressive as it is nursing a 93.7% price pump.

Its community, however, may soon have plenty of reasons to be angry to the “Dogefather” and his social media platform as there are speculative reports circulating about plans for Twitter to halt crypto wallet and integration related projects.

Still, as of this time, such unconfirmed development cannot dampen the rally the altcoin is having. In fact, technical indicators point towards another upswing trend.


Source: TradingView

More importantly, that particular surge enabled the altcoin to make the $0.111 resistance zone into its immediate support range.

If in the coming days DOGE manages to reach $0.14 and somehow manages to sustain and surpass that, the digital asset’s most likely next stop is $0.17.

However, this can only happen if volume trend for Dogecoin also increased. In the event that it doesn’t, the crypto will be forced to test its newly established support region. But if that happens, analysts believe the digital coin will eventually bounce back up almost right away.

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