The native token of the FTX exchange fell by more than 17% per day

The token of the world’s second largest exchange by trading volume fell by 17.45% overnight, and at the time of writing, FTT is trading at $ 18.29, according to CoinMarketCap. According to some crypto analysts, the FTX exchange is at risk of becoming insolvent. Currently, investors are leaving the exchange en masse, withdrawing funds to crypto wallets.

In addition to the information about the collapse of the native FTX token, it became known that the largest cryptocurrency exchange Binance plans to sell its FTT stocks completely. The decision was made due to the recent information that Alameda, a company close to FTX, owns $ 14.6 billion in assets, a significant portion of which is related to the FTT token.

«When we sold our stake in FTX last year, Binance received about $ 2.1 billion in BUSD and FTT tokens. Due to therecent revelations, we have decided to liquidate all FTT in our accounts ,» Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao said on October 6.

Well @binance and @FTX_Official are officially at war with each other.

What most people don't realize is that this conflict has been brewing since 2019.

Here's the complete history of how we got to this point and why you should care

MUST READ 🧵 pic.twitter.com/RZcquLYMS8

— Alex Valaitis (@alex_valaitis) November 7, 2022

It is worth noting that some members of the crypto community are convinced that there is a conflict between the Binance CEO and Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried that began in 2019. At the beginning of FTX's existence, Changpeng Zhao invested in the new exchange, but after a while, noticing the rapid development of a direct competitor, CZ refused to help Bankman-Fried.

Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.

— CZ 🔶 BNB (@cz_binance) November 6, 2022

Changpeng Zhao denied rumors of a conflict between the giant exchanges' CEOs, explaining the decision to eliminate FTT as a «workflow».

Benckman-Fried's desire to overtake Binance is also evidenced by FTX’s recent investments — Fried spent a record amount of $ 39.2 million on the US election campaign. The generous donations helped Bankman-Fried become one of the largest campaign contributors. According to analysts, investments in the election campaign by Democrats (who have a positive attitude towards the cryptocurrency industry) will help the further development of FTX.

However, it is currently difficult to predict what will happen to FTX next, as yesterday it became known that the exchange’s stablecoin reserves amount to 53 million, having decreased by 93% over the year. In addition, the platform’s balance in ethereum decreased from 400,000 to 108,000 ETH.