Crypto exchange FTX’s native token, FTT, fell more than 20% in afternoon trading in Asia amid reports rival exchange Binance is selling off its holdings of the token.
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Fast facts
- FTT fell more than 23% percent over 24 hours to trade at around US$17, according to data from CoinMarketCap, with most of the plunge happening in Asia afternoon trading.
- Changpeng Zhao, CEO of the rival exchange Binance, tweeted on Sunday that his firm would sell its FTT, due to “recent revelations” about the FTX exchange token.
- Last week, crypto media outlet CoinDesk reported that a balance sheet of FTX’s sister company Almeda Research showed a majority holding of FTT. The leak led to speculation that the company might have solvency issues.
- Alameda CEO Caroline Ellison tweeted that the company would happily buy Binance’s FTT tokens for US$22 each on Sunday.
- A Monday tweet from FTX’s official Twitter account also suggested users were suffering from a backlog in withdrawals.
- Over US$376 million worth of stablecoins have been withdrawn from FTX in the last seven days, as of press time, according to crypto data analytics firm Nansen
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