Holding FTT And BNB? It Might Be Time For You To Get Out

Over the past 24-hours, cryptocurrencies like FTT or BNB have experienced some downturn. Following an extremely busy weekend, Binance has decided to dump its FTT holdings. FTT as well as BNB will likely react to Binance’s dumping of FTT holdings worth billions.

FTT Expelled from Binance

Binance CEO Changpeng Zhao CZ lit fire to social media saidThe crypto exchange decided to sell its FTT position. Binance was a incubator of the FTX crypto exchange. It had already received $2.1 Billion in stablecoins as well FTT tokens when it exited. Binance still holds these funds until today.

However, according to CZ, the crypto exchange has decided that it is going to sell off its FTT holdings following recent “revelations”. Binance had already begun its sell-offsFTT tokens worth almost $600,000,000 were transferred to the exchange for sale. 

CZ said that the company was looking into ways to get the tokens sold while minimising the market impact. CZ explained that although the exchange typically holds tokens they receive, it decided to do so with FTT due to what could only be speculated as glaring red flags regarding the token and the FTX exchange.

Binance chose to be safe again, so it is not surprising. It was the Terra failure that cost Binance billions. However, it had survived the worst. The exchange’s $2.2 billion worth of LUNA tokens was only worth a couple of hundred dollars once the network collapsed.

FTT Token price chart from TradingView.com

FTX Token struggle at $22| Source: FTTUSD on TradingView.com

Retaliation Against BNB?

As CZ mentioned in his tweet, the crypto exchange actually holds tokens so it doesn’t seem like they were taking action against competitors. The sale of FTT tokens is certain to happen, even though Binance offered FTX $22 per token.

It is likely that FTX will retaliate against the exchange, selling any BNB tokens it may have. As such, both digital assets could experience massive drops in value. This is what we are already witnessing.

FTT, BNB and both are down respectively 1.85% and 5.1% in the past 24 hours as of writing. As the saying goes, “When elephants fight, it is the grass that suffers”, retail investors will likely bear the brunt of the war between these two giants.

This has been a signal that the battle is over for many who have watched it from afar. It is possible that it could become a war between the two exchanges, threatening to destabilize the other. This will most likely trigger the market’s plunge below the current lows.

Featured Image from Bitcoinist. Chart from TradingView.com

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