Cryptocurrencies like BNB and FTT have seen some downside in the last 24 hours. It follows an eventful weekend that culminated in crypto exchange Binance’s apparent intention to begin dumping its FTT holdings. As a result, a reaction is expected from both FTT and BNB when the exchange completes the dumping of its billions of dollars of holdings in FTT.
Binance exits FTT
When Binance CEO Changpeng Zhao (CZ) burned social media Told That the crypto exchange had decided to terminate its FTT status. Now, Binance had become an incubator for the FTX exchange and when it exited the exchange, it received $2.1 billion in stablecoins and FTT tokens, which is what Binance has so far.
However, according to CZ, the crypto exchange has decided that it is going to sell its FTT holdings following the recent “revelations”. Binance has started its sell-off With approximately $600 million worth of FTT tokens that were transferred to the exchange to be sold.
CZ explained that they were actually looking at ways to sell the token while minimizing the impact on the market. The CEO said that the exchange usually only keeps the tokens they get, but that it had decided to go with FTT that way, which can only be speculated about as red flags regarding the token or the FTX exchange.
It should come as no surprise that this time around Binance is choosing to play it safe. The collapse of Terra actually resulted in billions of dollars being exchanged as it was in the worst-case scenario. The exchange’s $2.2 billion worth of LUNA tokens were only worth a few hundred dollars after the network collapsed.
FTX Token struggles at $22 | Source: FTTUSD on TradingView.com
Vengeance against BNB?
As CZ noted in their tweet, the crypto exchange does in fact hold the token, so it doesn’t look like they were taking action against competitors. With its FTT token sale, there is no doubt how it will pan out, especially as an offer for FTX to buy the token from Binance at a price of $22 per token was reportedly turned down.
Given this, it is expected that FTX may retaliate against the exchange by selling any BNB tokens it holds. Such a development could see a sharp drop in the price of both digital assets, which is already being seen at this point.
At the time of writing, both FTT and BNB are down 1.85% and 5.01%, respectively, over the past 24 hours. As the saying goes, “when elephants fight, it is the grass”, retail investors will bear the brunt of the war between these two giants.
For many, this has indicated an exit point when watching the fight from afar. If this turns into a full-blown war of both exchanges trying to undermine each other, it will likely be the trigger that pushes the crypto market down from the bottom of its current cycle.
Featured image from Bitcoinist, chart from TradingView.com
obey Best Ovi on Twitter For market info, updates and the occasional funny tweet…