Giant Binance’s Accusations Against FTX Shake the Crypto Market

Hackers have successfully stolen $100 million worth of crypto from Binance's blockchain

This Tuesday, the cryptocurrency market is in the red. The fall of FTT, FTX’s cryptocurrency, brought down bitcoin and ether.

Concerns around the FTX trading platform, fueled by its competitor Binance, which has announced that it is getting rid of one of its cryptocurrencies, are shaking this market and causing the price of bitcoin to plummet.

Bitcoin fell 5.3% to 19,583 dollars around 2:10 p.m. GMT on Tuesday, thrown off balance by this duel between two of the three largest trading platforms. The cryptocurrency specific to the FTX platform, the FTX Token (FTT) plunged 25.4% to 16.63 dollars, a level not seen since the beginning of 2021.

Binance CEO Changpeng Zhao announced over the weekend that he had to sell the $529 million worth of FTT that Binance held as part of a capital exit from FTX.

A decision taken after an article by the specialized media Coindesk, which claims that Alameda Research, a fund owned by billionaire Sam Bankman-Fried, boss of FTX, invests mainly in FTT.

A lack of diversity that was denied by the leader of Alameda Research but which reminds investors of the disastrous example of Luna, this foundation whose cryptocurrency terra had collapsed on the se res.

“A Simultaneous Attempt to Attack Us”

“Liquiding our position in FTT is just a way to manage risk and learn from Luna,” Changpeng Zhao tweeted.

“A competitor is trying to attack us with unsubstantiated rumors. FTX is doing well. Our assets are doing well,” Sam Bankman-Fried replied Monday.

The two bosses, better known by their initials, cultivate diametrically opposed public images.

“SBF”, 30, calmly answers questions from regulators and journalists alike and claims to maintain a clearer legal framework for the sector, even if FTX’s head office remains in the Bahamas.

“CZ”, 45, is on the contrary a virulent supporter of the decentralization of cryptocurrencies. Its Binance platform recently authorized the transit of funds belonging to or destined for Iranian nationals, the company said on Friday, which however claims to have now frozen these accounts which risked counterattacks.

Follower of shock formulas, Mr. Zhao justified the liquidation of his position in FTT by assuring: “we are not going to help people who lobby against other industry players behind their backs”.

“These developments will not calm the concerns of cryptocurrency investors,” warns Fawad Razaqzada, analyst at City Index.

“This kind of situation has in the past had a snowball effect” from one crypto-asset to another, even if they are not directly affected by the information, abounds Craig Erlam, analyst at Oanda.

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