Looks like just the start as FTT is fighting back from some serious dumping, but knowing some numbers this is just the beginning. The 24 hour volume is 1/3rd of what Binance holds so have they started yet or will they do a over the counter deal which is highly unlikely? How much liquidity does Sam Bankman Fried have as this is going to cost to keep FTT from imploding.
I wrote about this last week when I first read an article highlighting the fragility of Sam Bankman Fried's crypto business. Split into 2 divisions consisting of Almeda Research (trading arm) and FTX the exchange all looks great on the surface until you dig a little deeper. The problem is the balance sheet is made up mainly of the FTT token and if that tanks then the entire empire could collapse. There is not much diversification and more like having the majority of eggs in one basket.
This morning I read that Binance is off loading their entire portfolio of FTT due to the risks as they learned from holding Luna. They have a reported $500 million in FTT which is a decent chunk and don't blame them for thinking the way they are. Many are now seeing this as high risk and are getting out whilst they still can but who knows what the right call is currently. This seems like a business decision by Binance to wipe out a competitor as FTX is an exchange.
When you see a weakness in business you take out your competitor.
If your concerned that the risk is too great then the only answer is to bail whilst you still can. I noticed on Twitter which is not the best place to get financial advice as the problem who is telling the truth many have had problems withdrawing from FTX. There is obviously a large backlog making you think how much is actually being withdrawn. With mixed messages being sent this is creating uncertainty and possibly delaying the inevitable collapse if it does happen. Sending a different message whilst giving them time to sell off what they have is how this normally works and why never trust anything you read and need to see things clearly for yourself.
We saw with Luna that when the market decides the risk is far too great the values can crash in a matter of hours and this is still early. I never bet with crypto as I value what I have and playing safe is the only way I play. I don't like seeing Crypto projects crash as it does affect everyone even if they are not invested in that project.
Since the beginning of the month BNB and FTT have separated after mimicking every move up till then.
The good thing about a Bear market besides being able to grow ones bags is that it also whittles out projects that are floored. This is the cleansing crypto requires as projects that are genuine need to stand out setting themselves apart to those that are not what they may seem.
This could be Binance moving their stake to sell and what better way of getting rid of a competitor than by dumping the stake.
The concern here is FTT is what is offering value to Almeda and FTT with them owning the majority of the stake. How long can they hold out before they have to sell of FTT to maintain stability as when something starts to crash it becomes a death spiral with no turning back.