The conflict between the two crypto industry giants Binance and FTX had been brewing for a while now, but things suddenly took a more brutal turn today. Binance has just announced that the crypto platform will get rid of all of its reserves by FTT tokensin response to rumors about its eternal competitor, FTX.
Binance – FTX, Divorce
It is, as often, via Twitter and the voice of its emblematic CEO Changpeng Zhao that the news fell at the beginning of the evening: Binance will get rid of all of its reserves in FTT tokens, the crypto asset of the competing platform, FTX.
“As part of Binance’s exit from FTX capital last year, Binance received approximately the equivalent of US$2.1 billion in cash (BUSD and FTT). Due to recent revelations that have been made, we have decided to liquidate any FTT remaining in our records
We will try to do this in a way that minimizes the impact on the market. Due to market conditions and limited liquidity, we expect this operation to take a few months. »
By “recent revelations”, CZ refers to information distilled the last days. Information suggesting that the FTX platform could potentially be based on a scheme similar to the one that took entities like Celsius out of business. The distribution (and the liquidity) of the FTT token of the exchange are particularly questioned.
FTX (and its in-house investment fund Alameda) were quick to fire back when it came to these speculations. However, Binance seems to have seen the perfect pretext for, on the one hand to offload FTT tokens which have suddenly become infrequent, but also to draw a cartridge on a competing exchange.on the rise.
It is currently difficult to determine precisely what total quantity of FTT tokens will be affected by this load shedding, which should last several months, as Binance seems ready to commit to it. The opportunity for CZ to recall that “the industry is still in its infancy and every time a project fails publicly, it hurts all users and all platforms “. A wise maxim that FTX will appreciate at its fair value, no doubt about it.
Now it’s up to you to choose your champion! Would you rather sign up for FTX Earn and get 8% interest on your crypto deposits or join Binance, getting a lifetime discount on your trading fees? And why not both ? (commercial links)