As you probably already know, on Sunday, the CEO of Binance – Changpeng “CZ” Zhao – came out to say that Binance will be seeing all of its FTT “due to recent revelations”. At the moment, CZ has not further elaborated as to what that means, so it is up to speculation. Nevertheless, the price of FTT dropped by more than 10%, but quickly recovered after that. Some community members see this Binance vs. FTX issue as entertainment, while others are worried.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
In case you missed it, the choice was made in response to weeks of criticism of Sam Bankman-Fried (SBF), the founder and CEO of FTX, for regulatory ideas he put up in a blog post that suggested limitations to decentralized finance (DeFi). Since then, SBF has promised to change his regulatory stance.
As you can see in the tweet above, as part of its withdrawal from an early equity investment in FTX that it had held since 2019, Binance received the finances in FTT last year. According to a statement from Zhao, FTX has purchased Binance’s ownership of the business using a $2.1 billion combination of FTT and BUSD, the stablecoin exclusive to Binance’s exchange.
The good news is that CZ will try to limit the impact on the market by liquidating the FTT tokens in the span of a couple of months due to a lack of liquidity.
One thing is certain now. Some users will look to move out of FTX due to fear for their assets.
So where will they go? Binance. The next-best option.
In fact, the movement has already begun. Although this might look like taking shots at a competitor to Binance, CZ tries to assure people it is not so. So what will happen to FTX, FTT, Binance, and BNB?
What Will Happen To FTX & FTT and Binance & BNB?
Since FTX is a competitor to Binance and Binance has more authority than FTX, we can expect people to start moving their funds out of FTX. The next best place for them to go to will be Binance, as you can expect.
If that turns out to be true, the price of FTT will continue to fall. It has already fallen by around 12% and will most likely continue to happen until the CEO of FTX – SBF – comes out with a statement regarding the situation. But even then, unless he says something to save the situation, things might still go south.
If that is the case, we can see FTT dropping to around $10-$15 by the end of the year. It is arguable whether this will be a great time to accumulate tokens or whether the token is completely doomed, together with FTX.
As for Binance, we can expect a bit more adoption of the CEX, which will naturally lead to the rise of BNB’s price evaluation as it is a beneficial token to the users.
Although we cannot be certain, we can see the price of BNB easily going over $400 and reaching its past prime of 2021.
This is certainly a monumental time for FTX. They have to prove to their users they can handle such situations or they will have to face the consequences of people’s fear.
We strongly suggest staying tuned with the situation between Binance and FTX and the prices of BNB and FTT. You can do so by following the link below.
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