While this beginning of the week is punctuated by the FTX affair, the storm threatening the platform has finally broken out on the cryptocurrency market. FTX’s FTT token tumbled 25% in minutes, followed closely by Solana (SOL) and almost all digital assets.
The FTT fell by more than 25%
That night, around 4 a.m., the FTT token of the FTX cryptocurrency exchange suddenly tumbled, creating panic among investors. The price of the token has fallen more than 25% in just a few minutes, going from $22 to less than $17.
Price evolution of FTT against USD in 15 minutes time frame.
This news comes amid a media turmoil for the FTX platform and its CEO, Sam Bankman-Fried. This was initiated when its main competitor and Binance CEO, Changpeng Zhaopublicly announced want to get rid of all FTT tokens which he held.
In question, rumors from a report by Coindesk reports thatAlameda Research, another company of Sam Bankman-Fried, would be close to insolvency in the event of a sharp drop in the FTT token. Indeed, the trading company alone would hold $5.8 billion in FTT cryptocurrencymore than the quantity in circulation.
The principal concerned finally spoke last night on Twitter. He wanted to reassure on the financial health of FTX, before calling on Changpeng Zhao and Binance to collaborate with FTX for the good of the ecosystem and its investors who could suffer from this media war.
👉 To go further – Who is Changpeng Zhao, the founder of the Binance platform?
How to explain this fall?
According to data from Coingecko, this fall corresponds to a disappearance over $600 million in market capitalization for the FTT token of the FTX platform. At present, it is impossible to give with certainty the source of this sudden fall.
Obviously, the main competitor Binance appears to be the ideal culprit, especially since this event coincides strangely with the 500 million dollars of FTT that Changpeng Zhao planned to sell on the market.
However, one should not draw too hasty conclusions. Other avenues can be mentioned, in particular simultaneous selling by a large number of investorsfueled by cascading liquidations of leveraged traders.
Still, the entire cryptocurrency market suffered from this event. While Bitcoin (BTC) is down 5%, Ether (ETH) is down 8.5%. Other victims are also to be deplored, in particular the Solana (SOL) strongly supported by Sam Bankman-Fried, which loses 16% in a few hours.
We will know a little more during the day thanks to on-chain analysis from our expert Prof. Channel, which you can find exclusively on our private group Le Grille-Pain. Otherwise, we will keep you informed of each novelty by regularly updating this article.
👉 To find out, here is the detail of the case that affects the FTX platform since Changpeng Zhao spoke.
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Source: TradingView, Coingecko
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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies to as many people as possible. I am also interested in technical analysis and trading.
Lilian Aliaga
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