The recent remarks of the Binance founder and the huge amount of cryptocurrency transactions from the aggravated rumors of Binance vs FTX have resulted in a huge amount of selling pressure on the FTT tokens issued by the FTX cryptocurrency exchange platform.
The shares of FTX’s FTT tokens were negatively impacted by up to 80% of their price after recent speculative news of Binance’s acquisition of the FTX platform. The value of FTT tokens has witnessed a huge amount of price drop in the last 24 hours. This was analyzed by a cryptocurrency screener CoinGecko which shows that the price dropped from $22 to $4.87 in the last 24 hours.
On Tuesday the FTT token reached its ultimate low of $3.12. This has been again reviewed up to $5 and then again roughly up to $5.48 at the time of completing this writing. These FTT tokens were nearly 93% low from their all-time value high of $84, which the FTT tokens were able to grab in September this year.
This cryptocurrency market situation has also impacted other cryptocurrencies such as bitcoin, which also witnessed a 10% drop in price and hit its nearly low up to $17,579 in recent times.
It can be evaluated from the analysis that Bitcoin witnessed a 73% drop from its 2021 November 21st approximate value of $69,000 to the current price of $17,772 earlier this year in June.
This price drop sequence was aggravated further after Sam Bankman-Fried confirmed on Tuesday that Binance will be acquiring a stake in FTX platforms to resolve the issue of liquidity crunch with the platform.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
The issue with FTX platforms started a couple of days back as the Binance founder announced that they will be selling its FTT token which costs around $ 500 million in the open market.
The founder of Binance announced that they will be liquidating the FTT tokens in the wake of the recent controversy between FTX and the sister company of FTX, Alameda research.
These controversies were aggravated by Binance when it commented upon the recent balance sheet issues with FTX. The announcement by the FTX founder that the company has enough backup funds to balance and minimize the market effect of selling into the FTT tokens couldn’t stop the selling approach which has impacted the price of FTT tokens and the financial turmoil for the FTX platform.
Binance founder also briefed that they will try to minimize the market impact while the FTT tokens offloading and selling activity come into the market. And so they will deal with selling digital tokens in the next few months in a phased manner.