Ftx native token ftt crashes after takeovers

Ftx native token ftt crashes after takeovers

The international stock exchange FTX.com has long been offering dealers a variety of discounts for holding and staking from FTT, the native tokens of the stock exchange. After the news of a kind of buyout deal that was provisionally achieved between FTX and Binance, the future of FTT is doubtful.

For trading on FTX, keeping different FTT amounts in one account offers up to 60 % fee discount.

But Binance has its own BNB token, which is also available, Industry vertical that an Ftt-token could be completely superfluous.

After an initial upswing, the FTT fell greatly on Tuesday, over 70 % a day until 3:00 p.m.

Spothandel from FTT-that is supposedly taboo to US dealer-is only available on a handful of crypto exchanges, mainly ftx itself and bony.

In a recent market-shaped step, the CEO of Binance, Changpeng "CZ" Zhao said that his company would separate from the FTT token before he changed the course completely and made his provisional intention to take over the company public. The deal, which depends on Due Diligence and final conditions, does not include FTX's US arm.

cz confirmed on Monday that a transfer of 23 million ftt-token from FTX at the time of 584 $ "Part" of the Bony investment. This was a significant fraction of the total volume of the FTT trade when you consider that the sellers were unpleasant and the liquidity pushed on a wall.

The move put a temporary lower limit below the FTT price. But it didn't take.

In early Tuesday - around 2:30 a.m. ET - FTT collapsed and never recovered. At 3:00 p.m. in New York, the token was in the middle of a recovery of a low of about $ 2.60 and was traded between $ 4 and $ 5 in a very volatile market environment.

According to Peter Eberle, Chief Investment Officer and President of the investment manager Castle Funds focused on digital assets, the FTX exchange suffered from a crisis of trust.

"FTX had massive drains from her stock exchange because everyone was afraid of losing online assets," he said Blockworks by email. "This means that the market maker have also removed assets and that this has removed liquidity. Many dealers seem to have withdrawn or have reduced their trade size."

When fear takes over, a lack of liquidity can be particularly fatal in already sparse markets.

A spokesman for FTX was not available for a statement.

Ornella Hernandez carried to report.

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The contribution "FTX native token ftt crashes for Takeover News" is not a financial advice.