FTX Token (FTT) Plunges 19% In 1 Hour Amid Binance's Plan To Liquidate Entire FTX Native Token Holdings

FTT FTT/USD, the token created by crypto exchange FTX, dropped significantly amid an intensive sell-off fueled by Binance BUSD/USD CEO Changpeng Zhao’s announcement to liquidate his company's entire holding of FTX native tokens.

What Happened: According to CoinMarketCap, FTT is down 19.29% in the past hour. The native token of FTX dropped from $21.96 to $17.92. 

Binance's decision to offload FTT tokens was made after weeks of criticism of FTX CEO Sam Bankman-Fried, for regulatory ideas he put up in a blog post that suggested limitations on DeFi. Since then, he has promised to change his regulatory stance.

See More: FTX Token (FTT) On-Chain Trading Signals 

Bankman-Fried had come up with a draft regulatory framework for cryptocurrencies — a set of standards — while waiting for full federal regulatory regimes. This didn’t go well with Zhao who made the decision citing "recent revelations that have come to light," and that he would not support people who “lobby” against other industry players behind their backs.

Crypto analysis group Santiment tweeted stating “In just two days, the amount of Ethereum ETH/USD held in FTX's main wallet has dropped from 322k to 32k.” It should be noted that at one point the wallet held 500 $ETH per minute.

Price Action: FTT is down 19.83% in the last 24 hours, and plunged 31.98% in the past seven days, according to data from Benzinga Pro.

Read Next: Elon Musk Says Dogecoin Should Be 'More Currency-Like,' Responds To Billy Markus On Crypto's Future



Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsTop StoriesMarketsMoversTrading IdeasChangpeng ZhaoFTTFTX Token
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!