Biggest drops this year
The FTX exchange token hit $2.50 on Tuesday before rising slightly to over $4.00. This state of affairs persists at the time of writing. This means FTT is down almost 90% overnight and down 97% from last year’s ATH ($85). Solana also had a huge slump. A stock exchange project lost 50% of its value.
Bitcoin, the oldest and largest cryptocurrency in terms of market capitalization, is also not doing well. Its exchange rate has fallen nearly 17% in the last 24 hours to hit a new yearly low of $17,200. This is a 75% depreciation from historical ATH ($69,000) in November 2021. Earlier in June, BTC completed its fall at $17,600. Many analysts believed that the trough was over, but yesterday they wrote a completely different scenario.
Problems with FTT
Both Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried confirmed on Tuesday that Binance will take over FTX as the exchange faces a significant liquidity crunch. The situation began to gain weight a few days ago. CZ then announced that it had sold its entire stake to Binance FTT for at least $500 million.
“Due to recent revelations that have surfaced, we have decided to eliminate any FTT from our reserves.”
CZ said Sunday without revealing exactly what the “revelations” were.
“We will try to do it in a way that minimizes the impact on the market. Due to limited liquidity, we expect this to take several months.”
Despite CZ’s desire to minimize the impact of the Binance FTT sell-off, it is likely that this first announcement influenced FTT price action. CZ, however, denied that this caused any confusion.
“There were also conspiracy theories that somehow I orchestrated the whole thing,” he tweeted on Monday about FTX’s recent troubles. “If you read this thread, you will understand that no one can arrange this.”