In response to Alameda's disclosed balance sheet, CZ provided its response on Twitter. It was made abundantly apparent by him that the Binance exchange will be getting rid of any and all FTT that is still in its possession. When CZ left FTX, someone took their FTT tokens with them. This is how they got them.
Despite this, CZ did not provide any information regarding the number of FTT tokens that were available for purchase. However, word on the street is that Binance currently possesses FTT and BUSD assets worth $2.1 billion.
According to CZ's tweets, Binance has received over $2.1 billion worth of FTT and BUSD transactions. During this time last year, the exchange was in the process of leaving FTX. He went on to say that as a direct result of "recent discoveries," they are in the process of selling off all of their FTT.
Following the announcement made by CZ, the Chief Executive Officer of Alameda Research, Caroline Ellison, made an offer to purchase from Binance. The cost of one token was specified to be $22 in the offer. According to Ellison, the purchase will also reduce the negative impact that the dump would have had on the market.
Additionally, she extended the invitation via Twitter. It got right to the point and said that if Binance was willing to sell right away, then Alameda would buy it.
FTT-Backed Loans Liquidation
However, CZ added that the decided liquidation was going to take some months because there was a limited amount of liquidity. In addition, due of the unfavorable market scenario that has persisted. In addition to that, he stated that the liquidation process will be carried out in such a way that it will involve as few liquidations as possible.
Despite what Zhao has said, FTT has still decreased by almost 10% over the course of the last 24 hours. Its price on the market right now is $22.
On Saturday, EtherScan reportedly detected a transfer of 22,999,999 FTT tokens to the Binance exchange. At that time, the tokens had a value of $585 million dollars. The quantity of tokens exchanged was equivalent to nearly 17% of the total supply of FTT on the market.
CZ would later confirm that the transfer of funds was part of the exchange's plan to liquidate its position in the position. He went on to say that the decision was not intended to be a jab at the company's rivals. Users, on the other hand, are speculating that such a significant dump might have a significant impact on FTT-backed loans.
A user on Twitter stated that it appears as though CZ is gradually dumping FTT on the market to the tune of $500 million. Because of this, a significant number of loans that were backed by the Alameda token will be liquidated. They predicted that it would further lead to a downward spiral toward disaster.