Recently, Bitcoin supported the $20,000 price range four times, and there were expectations that it would go up. Learn more Since then, the price, which has risen by about $1,500, has retreated by $1,300 again, showing signs of slowing down. a damped bitcoin price At the same time as Bitcoin’s price rise has been dampened, most Altcoins, including Ethereum, have also slowed down. Speculation is rising that the overall rise in the cryptocurrency market has slowed down due to a fight between Binance, the world’s No. 1 cryptocurrency exchange, and FTX, the No. 2 cryptocurrency exchange.
The fight is also a battle between Changfengjiao, CEO of Binance, and Sam Bankman, CEO of FTX, who is one of the top celebrities in the cryptocurrency field. St. Bankman has not only become a wealthy man worth $29 billion at the age of 30 but is also nicknamed “bubble” for his unique curly hair.
Sam Bankman, founder of the FTX exchange
Today, I’m going to briefly summarize the various articles and guesses that are coming out about this inside story.
the development of events
First, the case begins in 2021 when Binance exits all of its shares on the FTX exchange. At that time, Binance received about 3 trillion won worth of coins in return. I received it as BUSD, a stable coin issued by Binance, which was owned by FTX, and FTT, which is FTX’s own coin.
However, as Changfengzao, CEO of Binance, recently announced on Twitter that he would sell all of the FTX’s own coin, FTT, which he received at this time, speculated that a crisis may have come to the FTX exchange.
In particular, this tweet has had a significant impact as FTX directly lobbied against Binance while talking about Binance in the industry.
Here’s a full translation of the tweet.
The disposal of all of our (Binance)’s FTT (FTX exchange’s own coins) is just a follow-up to last year’s Exit (to clean up the relationship by disposing of all of its shares on the FTX exchange). This is the risk management learned from the LUNA crisis. Previously, we sent support to FTX, but we would not pretend to have continued affection after we had already divorced. We are not at odds with anyone. But we will no longer sponsor people behind our backs who lobby against us to other industry insiders.”
As a result, there were rumors of FTX bankruptcy in the cryptocurrency market that the FTX exchange would intensify liquidity problems and could lead to bankruptcy. On the 7th, more than 650 billion won of stable coins were withdrawn from the FTX exchange only for one day. Some investors, who felt at risk of so-called bankruptcy rumors, withdrew their funds. The fact that the withdrawal was much delayed than usual also raised concerns. This could be a harbinger of a bank run (which means that everyone is trying to withdraw, so there’s not enough withdrawal funds to withdraw).
Changfengjiao said he would dispose of all FTT coins and said it was part of crisis management because of the recent report by Coinesk.
According to the report, the financial situation of Alameda Research, a brother company of the FTX Exchange, was not good, which could lead to a bad situation on the FTX Exchange.
Since Alameda’s debt level is more than 50%, and much of the assets owned by Alameda are FTT tokens, so if Alameda had a problem, FTT tokens could pour into the market at a bargain price. On top of that, Changfengjiao’s tweet made the value of FTT coins even more dangerous.
Meanwhile, while 650 billion won was withdrawn from FTX, FTX’s Ethereum balance was halved, while FTT holdings increased significantly. It is interpreted that users deposit FTT coins on the FTX exchange and withdraw other coins.
Furthermore, more than $1.3 billion was reported to have flowed into Binance during the same period. It can be interpreted that FTX users are rushing to Binance because they are anxious about bankruptcy rumors.
First, I’ll fix it, but…
However, some say that FTX’s bankruptcy theory is a happening or exaggerated psychology. First of all, Changfeng Zhao’s tweet also reveals that selling all FTT is for risk management.
Larry Thermac, vice president of Block Research, also assessed that the possibility of FTX going bankrupt due to Alameda is close to 0%, although it may be delayed due to the temporary withdrawal of many users.
Alameda Research also explained that the debt revealed in the Coindesque report is part of the assets held, so it is not a big problem.
FTT prices in the midst of a plunge
Meanwhile, FTT prices seem to be plunging even more today when the articles began to appear in earnestly. In addition, virtual currency as a whole continues to decline.
Many people believe that Binance CEO Chang Feng-jiao is showing the example of Sam Bankman of FTX, who has been arguing over the incident several times. Sam Bankman has already criticized Binance’s in-kind free commission event as a washboard trading that artificially creates excessive trading volume and manipulates the market. The incident revealed that if Changfeng Zhao decides, he can create rumors of bankruptcy of FTX, the world’s second-largest cryptocurrency exchange. It seems that he might be trying to tame the rapidly emerging Bbogeul hyung. Meanwhile, Ppogul is making a gesture of reconciliation that he enjoys cooperating with Binance.
I think the rise of virtual currency has also lost momentum for the time being. Once again, I feel that there is no market that only rises unilaterally or falls unilaterally.
I hope you always manage the proportion of long and short positions well.