Changpeng Zhao, the CEO and founder of Binance, announced that his company was preparing to liquidate its FTX Token (FTT) holdings, but has denied he is in a fight with Sam Bankman-Fried, the founder of FTX.
CZ Doesn’t Want a Fight
The cryptocurrency market took a downturn after a strong in the first weekend of November, following the drama that ensued from the comments of CZ. FTX Token (FTT) took one of the biggest losses, plunging more than 32%.
The 48-hour price chart for FTX Token (FTT). Source: CoinMarketCap
With the comments of CZ causing a wave of insolvency speculations of Sam Bankman-Fried’s FTX and Alameda, many have suggested that Binance could be going after FTX, a competing crypto exchange.
In addressing the speculations, the founder of Binance took to Twitter to debunk rumors of a fight. In reacting to the allegations, he wrote
"sorry to disappoint, but I spend my energy building, not fighting.”
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Funny memes, media & some people tried to color this as a “fight.” Sorry to disappoint, but I spend my energy building, not fighting. Today I spent my day on our business & our community. I suggest others do the same. Back to building. 4/4— CZ Binance (@cz_binance) November 7, 2022
CZ Declines Alameda’s Offer
Shortly after CZ made the announcement on Sunday, November 6th, Caroline Ellison, the CEO of Alameda Research, announced that her company would be happy to buy back the FTT stake held by Binance.
CZ has declined the offer, however, stating that his company would rather stick with the free market. Binance could also maintain its original stance of selling the FTT it holds over several months.
On the Flipside
- CZ’s approach to the issue has drawn criticism on his role in fueling the FUD narratives around FTX insolvency and framing the competing FTX as being against crypto.
Why You Should Care
The FUD and narrative being spread about FTX and Alameda Research have taken a toll on SBF’s companies, as well as the entire crypto industry.
For more info on the insolvency claims, read:
Bankman-Fried’s Alameda Research’s assets are reportedly “entirely illiquid”
Read SBF’s reaction to the move below:
Sam Bankman-Fried Reacts as Binance Prepares to Offload $529 Million in FTX Tokens (FTT)