Let’s get ready to rumble. The war between two of the biggest bosses in crypto space, Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried (SBF) seems to be just picking up steam and is currently the most heated issue for the market.
The drama began early Sunday morning when FTX’s FTT token took a sudden drop as rumors surfaced that a giant whale with 23 million FTT, probably Binance, might be dumping its tokens. Shortly after, the price of FTT started to drop by 10%.
Fears spread like wildfire on Twitter that the downturn could trigger liquidations for FTX, leading to a Terra Luna-style “death spiral.” Some users accused SBF of running a fraud scheme with the FTT token.
For those confused about #FTX & #FTT, here’s the TLDR:
1️⃣ FTX prints FTT out of thin air
2️⃣ FTX lends FTT to Alameda Research
3️⃣ Alameda Research borrows USD stables against FTT
4️⃣ Alameda Research sends USD stables to FTX
5️⃣ Repeat = infinite money🚨 No need to sell FTT! pic.twitter.com/RJiEpbcgrf
— Duo Nine | discord.gg/ycc (@DU09BTC) November 6, 2022
Binance Vs. FTX: War Time
The sudden price slump was preceded by a report on Dec. 2 that revealed internal financial documents of FTX and showed overlaps between Bankman-Fried’s crypto exchange FTX and his hedge fund Alameda Research.
According to the report, Alameda’s balance sheet is supported in large part by the FTT token, and thus on shaky ground. The $5.82 billion in FTT…
