Changpeng Zhao (CZ), CEO of Binance has reportedly moved $584 million in FTX (FTT) cryptocurrency to Binance as part of the announced liquidation process.
CZ announced that Binance will liquidate their FTT tokens within the next few months.
It was clarified that Sam Bankman Fried (SBF) who is the founder of the trading company Alameda Research and the producer of the FTT token has held the digital asset worth more than $3 billion.
The streak, Alameda Research is said to use FTT as one of the collateral to borrow USD stables, but most investors expressed their suspicions as to why Binance did not sell FTT holdings directly to SBF but to the open market.
Therefore, there is speculation that Binance considers FTT as a liability and the dilution is done in order to reduce risk.
However, CZ vehemently denied the charge when crypto influencer Ran Neuner stated that his goal in selling his stake was solely to destroy Alameda's research.
It is understood that the following issue has had a negative impact on the FTT token price by shrinking by more than 10% in the past 24 hours, which is currently hovering around $21 to $22.
If the FTT breaks the $21 support level then the digital asset is highly likely to make a drastic decline.
