FTT tanks 30% after 1.9M tokens moved to FTX, Binance denies selling FTT tanks 30% after 1.9M tokens moved to FTX, Binance denies selling
Reports from Lookonchain and Peckshield identified several whale transactions that could have impacted FTT's value.
2 min read
Updated: Nov. 8, 2022 at 9:45 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX’s FTT token lost roughly 30% of its value in the last 24 hours after 1.9 million FTT tokens — worth roughly $44 million at the time — were moved from the Genesis over-the-counter (OTC) Desk to FTX on Nov. 8, according to Wu Blockchain.
FTT suddenly plunged 14% in 1 hour, and SOL fell 14% in 24 hours. 1.9 million FTT ($44 million) was transferred from the Genesis OTC Desk to FTX 12 hours ago, but CZ said it was not Binance selling.
— Wu Blockchain (@WuBlockchain) November 8, 2022
Speculation pointed to Binance but the exchange’s CEO Changpeng ‘CZ’ Zhao reportedly denied that the exchange has sold its FTT.
FTT had mostly traded for around $22 on Nov. 7; however, the asset experienced extreme volatility in the early trading hours of Nov. 8, pushing its value to as low as $15.56.
FTT whales in action
Reports from Lookonchain and Peckshield identified several whale transactions that could have impacted FTT’s value.
Lookonchain stated that a whale transferred 272,516 FTT ($6M) to Binance and 45,000 FTT ($1M) to FTX Exchange. According to the on-chain sleuth, the whale would be selling at a $6 million loss as his average buying price was $41.
Meanwhile, Peckshield reported that over 13 million FTT tokens were transferred from FTX to new wallets. One of the transactions involved the transfer of 10M FTT ($166.5M) away from its parent company exchange to the address 0xc…cb6-the address is now the fourth largest holder of FTT.
#PeckShieldAlert ~10M $FTT (~$166.5M) has been transferred from FTX exchange to the address 0xc…cb6
The address has become the 4th largest $FTT holders pic.twitter.com/lsEJibtFHI— PeckShieldAlert (@PeckShieldAlert) November 8, 2022
BNB, Solana, and BIT caught in the crossfire
Binance’s native token, BNB, also appeared to have experienced some mild sell-off, falling by around 8% to $315 during the early trading hours.
While the token has slightly recovered to $326 as of press time, Lookonchain identified three dormant addresses that sold $89.5 million of their BNB holdings.
In the last 24 hours, Solana (SOL) crashed by 22% to as low as $25.59. The crypto community speculated that Alameda was dumping SOL to support FTT at $22.
Not trying to FUD @SBF_FTX and Alameda but when $SOL takes a 10% dump + other solana coins also tanking, while $FTT stays the same at $22, it’s clear who is market selling $SOL and other coins to defend $FTT 😕 SOL is going much lower at this rate of selling pic.twitter.com/HS2fghFug9
— Bobby Apelrod / / nicefeet.sol (@tofushit888) November 8, 2022
Hal Press, the founder of a hedge fund investment in cryptocurrencies North Rock Digital, raised questions about whether Alameda dumped Solana to support FTT at $22. Press continued that a below $22 price “could trigger some loans they (Alameda) can’t repay.”
Another flag is Alameda seemingly dumping SOL to support FTT at 22. Why is 22 so important? https://t.co/1JJQAaCRrM
— Hal Press (@NorthRockLP) November 8, 2022
Meanwhile, another crypto token that was caught in the whirlwind was ByBit’s BIT token. The BIT token plunged roughly 20% within an hour to $0.307, forcing the BitDAO community to question whether Alameda dumped and breached their three years mutual no-sale commitment.
busy at the moment but that wasn't us, will get you proof of funds when things calm down
— Caroline (@carolinecapital) November 8, 2022
Alameda CEO Caroline Ellison, however, quelled the rumors stating that the trading firm had not sold its BIT holdings.
Nansen CEO Alex Svanevik tweeted that the transaction that took the FTX wallet below 100 million BIT was made by the venture capital arm of ByBit, Mirana Ventures.
A bit odd that the transaction that took them below 100M BIT actually was made by Mirana Ventures – Bybit's own VC arm. pic.twitter.com/KanHJDfwnP
— Alex Svanevik 🐧 (@ASvanevik) November 8, 2022
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Solana
$198.180
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
BitDAO
$1.30397
BitDAO is a decentralized autonomous organization that wants to level the playing field for every person in the world by building a decentralized token economy.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Nansen
Nansen is a blockchain analytics platform that enriches on-chain data with millions of wallet labels.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.