Jamie McNeill
FTT, the FTX token, which lies at the heart of Sam Bankman-Fried’s FTX empire, has been struggling in recent days as rumours have begun to circulate that FTX is on the brink of insolvency.
The FTX token FTT breaks through the $22 level
After it was announced that Binance had decided to sell what remained of their FTT (around $580m worth), Alameda (the hedge fund that is part of the same company as FTX) offered to buy their entire position from them over the counter at $22.
Breaking: The BitDAO community issued a proposal asking Alameda to provide the on-chain address of the tokens that promised not to be sold for 3 years. If there is no response within 24 hours, the community will decide what to do with the 3362315 FTT. https://t.co/HNrSSygL1K https://t.co/nY7aCLISHn
— Wu Blockchain (@WuBlockchain) November 8, 2022
FTT failing to catch a bid
There is almost no buying demand for FTT now that the $22 level has been broken, and it seems that the token will find it extremely difficult to reclaim this level given the extent of their likely insolvency.
It had been promised that Alameda would buy Binance’s entire stock of FTT for $22, but this has seemed increasingly unlikely.
Extreme leverage
It seems that one of the main ways that SBF was able to take on so much leverage was by inflating the price of tokens he controlled, such as FTT, and then taking out loans against illiquid tokens that remained locked.
Most of the FTT supply isn’t circulating, and yet SBF was able to take out loans against this portion of the supply to accumulate stable coins with which he would buy more assets – FTX and Alameda have allegedly been doing the same with their Solana holdings.
Binance’s war with FTX
Binance has been competing with FTX for quite some time now, and no doubt CZ will have been concerned about how quickly his competitor has been rising in popularity.
CZ recognised Bankman-Fried’s erudite potential early on, and thus decided to become an early investor in FTX when the project was still young, but tensions have been rising in recent years as SBF has continued to make a series of nefarious decisions in the business world.
Well @binance and @FTX_Official are officially at war with each other.
What most people don't realize is that this conflict has been brewing since 2019.
Here's the complete history of how we got to this point and why you should care
MUST READ pic.twitter.com/RZcquLYMS8
— Alex Valaitis (@alex_valaitis) November 7, 2022
Most notably, SBF has been accused of trying to weaponise the US political system in order to try and assert his dominance over the markets.
Given that his company is now likely to collapse, it seems that SBF’s influence over the US political system will also now be significantly diminished – something that is music to the ears of many in the crypto industry, who believed that he was campaigning for extremely unfair regulations.
Dash 2 Trade continues to gather steam at its presale
One alternative in the trading space is the brand new project Dash 2 Trade, which has continued to gain steam throughout its presale and has now raised over $5.5m.
Dash 2 Trade is a brand new crypto signals platform that provides its users with a range of different tools and utilities for trading in the crypto space, and is trying to position itself as the”Bloomberg terminal of crypto“.
Currently, the presale is now in its third stage, with the price standing at $0.0513 – the price will rise to $0.0533 in the next stage, and will continue to rise significantly by the time the project has fully sold out.
Relevant news:
- Our Cryptocurrency Guides
- Traders’ Dream Dash 2 Trade Lists on LBank – Raises $500k in 24 Hours to Pass $4m
- Dash 2 Trade Raises $5.4m in Two Weeks as Traders Flock to Presale
Dash 2 Trade - New Gate.io Listing
- Also Listed on Bitmart, Changelly, LBank, Uniswap
- Collaborative Trading Platform Token
- Featured in Bitcoinist, Cointelegraph
- Solid Proof Audited, CoinSniper KYC Verified
- Trading Community of 70,000+ Members
This article was written for Business 2 Community by Jamie McNeill.
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