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HomeTechnologyFTX Founder Dismisses Balance Sheet Concerns After Rival Binance Announces Token Liquidation

FTX Founder Dismisses Balance Sheet Concerns After Rival Binance Announces Token Liquidation

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Sam Bankman-Fried, the billionaire founding father of crypto alternate FTX, sought to reassure crypto buyers on Monday after a rival alternate, Binance, stated it might liquidate its holdings of FTX’s native token.

Binance’s CEO, Changpeng Zhao, stated in a sequence of tweets on Sunday that his agency would promote its holdings of the FTX token “as a consequence of current revelations which have come to mild.” Zhao didn’t specify which revelations he was referring to or how a lot of the token Binance held.

“A competitor is making an attempt to go after us with false rumors,” FTX’s Bankman-Fried stated in a sequence of tweets on Monday. “FTX is ok. Property are tremendous.”

Bankman-Fried stated in his tweets that FTX retains “audited financials” and is “extremely regulated”. He didn’t initially specify which competitor he was referring to, however tagged Zhao in a later tweet, saying “I might like it, @cz_binance, if we might work collectively for the ecosystem.”

Crypto fanatics had raised questions on Twitter final week about FTX’s token, following a report from crypto information web site CoinDesk a few leaked steadiness sheet from Alameda Analysis, a crypto buying and selling agency based by Bankman-Fried that maintains shut ties with FTX.

In keeping with CoinDesk’s report, a lot of Alameda’s $14.6 billion (roughly Rs. 1,19,300 crore) in property are held in FTX’s token, which is named FTT. Reuters was unable to independently confirm the accuracy of the report or the origin of the leaked steadiness sheet.

For the reason that CoinDesk report on November 2, FTX’s token has shed round $400 million (roughly Rs. 3,200 crore) from its market cap as merchants offered the token. It’s buying and selling close to its lowest since February final yr, in accordance with CoinGecko knowledge.

Alameda CEO Caroline Ellison additionally stated in a tweet that the “steadiness sheet data which has been circulating just lately” solely confirmed a subset of Alameda’s company entities. The agency has greater than $10 billion in property that aren’t mirrored within the CoinDesk report, she stated.

Crypto buyers have been on edge following a rocky summer season, which noticed token costs plunge as rising rates of interest and a broader monetary market downturn prompted buyers to ditch riskier property.

Mainstays within the business like Singapore-based crypto hedge fund Three Arrows Capital and crypto lenders Celsius Community and Voyager Digital have filed for chapter. FTX received a bid in September to purchase the property of Voyager, and Bankman-Fried has stated his alternate is working to return cash to Voyager clients.

© Thomson Reuters 2022

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