Binance sells FTX OMG WHAT IS THIS NOW

By: Riya Gote

A to Z Experience

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Nov 2022

After realising FTX's dire financial situation, Binance dumps the stock. Given that the crypto exchange has a $6 billion financial loss and that Binance is quite likely to sell off FTX.

Over $6 billion is the difference between FTX's assets and liabilities, and both FTX and Alameda Research are experiencing severe liquidity problems. The largest asset of FTX was disclosed.

If you own a crypto firm, avoid borrowing. Don't spend money "efficiently." possess a sizable reserve. Binance has never taken on debt and has never utilised BNB as security.

Never use a cryptocurrency you invented as collateral. Yesterday, Binance CEO Changpeng "CZ" also questioned the FTT collateral.

Given that investors are unsure of what will happen to their money, the news has spread anxiety, mistrust, and uncertainty throughout the cryptocurrency market.

FTT, the FTX exchange's native token, has dropped 25% in the past day and is now trading at $3, while Solana, Alameda's second-largest position, has dropped 37% and is currently trading at $14.55.

The cryptocurrency market is in the red, with Bitcoin down more than 10%, trading at $16, 940, and Ether down 11% over the last 24 hours, trading at $1,194.

Today, the hashtag #cryptocrash gained traction on Twitter as experts voiced their worries regarding the ongoing conflict between Binance and FTX.

The crypto market was relieved that there wouldn't be a crisis when Binance said that it would buy FTX.

Images Credits: unsplash

The problem at cryptocurrency exchanges has gotten worse since Binance dumped FTX since the SEC is now also involved. 

The FTX issue has increased the likelihood of a Terra-like cryptocurrency market collapse.

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