Binance’s CEO has confirmed that the company is set to liquidate its position in its rival cryptocurrency exchange’s FTT token.
Changpeng Zhao (CZ), the CEO of Binance, revealed on Sunday that the cryptocurrency exchange would liquidate its entire position in FTT tokens.
FTT is the native token of the FTX exchange, one of the leading cryptocurrency exchanges in the world, and a major rival of Binance.
According to Changpeng Zhao, Binance is liquidating its FTT position due to some recent revelations that have come to light. However, the Binance CEO didn’t elaborate publicly.
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
Changpeng Zhao added that;
“Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.”
The Binance CEO added that the liquidation would be completed over the next few months due t market conditions and limited liquidity. He added that the process would be done in a way that would minimise the market impact on FTT.
While responding to comments, CZ said selling the native tokens of rival cryptocurrency exchanges ensures that Binance doesn’t stay in a position to attack its competitors. He added that the move is to ensure that the cryptocurrency market grows.
Despite that, FTT has lost more than 4% of its value in the last 24 hours. At press time, FTT is trading at $22.49. The coin had been underperforming over the weekend as it was trading above $25 per coin n Friday.
Last week, Binance announced that it had partnered with one of the largest hardware wallet makers, Ledger.
Per the terms of the agreement, Binance users can now utilise Ledger Live to securely buy and receive cryptocurrencies directly in their Ledger wallet accounts. This means that Binance users will no longer need to switch between apps to manually purchase and transfer crypto assets.