The price of FTX’s FTT token, a cryptocurrency, has dropped significantly over the last hour. According to data from CoinMarketCap, the token’s price dropped 19% from about $22 to about $17 at the time of writing.
The announcement coincides with a high-profile standoff between FTX and Binance, two of the biggest exchanges in the cryptocurrency market.
On November 6, Binance CEO Changpeng Zhao tweeted that the exchange would start selling off its FTT holdings as a result of “recent revelations.” It appears that Zhao was alluding to a previous report that detailed Alameda Research’s balance sheet.
Sam Bankman-Fried, who runs FTX, is the owner of the cryptocurrency trading company Alameda.
Sam Bankman-Fried, CEO of FTX, attempted to calm the market following Zhao’s tweets. He declared the exchange to be “fine” yesterday and urged FTX and Binance to collaborate for the industry’s benefit.
At a price of $22 per token, Alameda CEO Caroline Ellison offered to purchase Binance’s FTT holdings.
The price of Solana and FTT may emerge as the most significant data points for tracking the course of the cryptocurrency market this week, according to a note from market maker B2C2 that was published on Nov. 7.
Traders in the market are worried that Alameda, which has billions of dollars’ worth of the token on its balance sheet, could suffer if the price of FTT drops.
Such a decline might have an effect on FTX, the exchange to which it is connected. The company has already experienced withdrawal issues.
The withdrawals queue, according to a recent tweet from FTX, “is decreasing and getting back to more reasonable levels; nodes and banks are catching up.”