Tension between 2 major exchanges shakes the cryptocurrency market
Battle between Binance and FTX
Binance is currently the largest cryptocurrency exchange in the world. The 2nd place belongs to the FTX exchange. However, the conflict between these two cryptocurrency exchanges is wobbling crypto market.
Tensions between Binance and FTX began to erupt when Binance CEO – Changpeng Zhao (CZ) announced that he wanted to sell off $ 2.1 billion of FTT and BUSD cryptocurrencies due to the suspicion of FTX CEO – Sam Bankman-Fried (SBF). “bad play”.
Sharing on his personal page, CZ said that it will gradually sell the amount of FTT holding for many months to reduce the big impact on the market. However, after the above information was posted, the FTT price plunged and hit the $15 mark yesterday morning (November 8).
The story became more and more complicated when at 11pm last night, CZ suddenly announced that it had reached an agreement to buy back the FTX exchange with an undisclosed value. This immediately pushed the entire crypto market into euphoria.
Accordingly, the value of two cryptocurrencies representing Binance (BNB) and FTX (FTT) skyrocketed, sometimes reaching nearly 30%.
However, soon after, when many experts pointed out that Binance would be difficult to do this because the antitrust law in the US did not allow it, the whole market quickly fell, fell into a state of panic and moved to a state of panic. sell-off trend.
Impact of the “war” on the crypto market
There are many theories that the Alameda Research fund (also under the management of Sam Bankman-Fried) is selling off the cryptocurrencies in its portfolio to support the price of the FTT token.
This led to the chain collapse of many other important cryptocurrencies such as BTC, ETH or even unrelated parties.
For example, the price of BitDAO – the cryptocurrency representing another top market exchange, Bybit, also suffered a serious decline due to the impact of the incident. This cast a shadow over the entire crypto community.
Earlier in 2021, two funds BitDAO and Alameda Research made a swap commitment deal. Specifically, Alameda Research has proposed that BitDAO invest $180 million in FTT, whereby Alameda Research will keep 1% of the total supply of BIT and BitDAO will keep 1% of the total supply of FTT. Both parties pledged not to sell this cryptocurrency for at least 3 years.
However, with the current “war”, the community is speculating that Alameda Research is “betraying”, selling Bit to subsidize FTT.
Before the above situation, Ben Zhou – CEO of Bybit immediately asked SBF to provide authentication data on whether he still holds Bit or not. Answering this issue, CEO of Alameda – Caroline asked everyone to calm down and will answer after everything stabilizes again.
Later, the Alameda Foundation also presented proof that they had never sold Bits. This allowed Bit to rise again before falling into a state of panic and continuing to plunge due to the general pressure of the market.
At dawn on 9/11 Vietnam time, BitDAO witnessed a dump that plunged more than 30% in less than 2 hours and is hovering at $0.33. Meanwhile, the FTT coin (the token of the FTX exchange) sometimes dropped by nearly 90% (from the peak of 20.5 USD to 2.51 USD) in just a few hours.
The above event shows that the cryptocurrency market has many unpredictable risks. This is also a warning to investors about not being able to “put all your eggs in one basket”.