MacKenzie Sigalos, a renowned Crypto and Tech reporter at CNBC, has recently investigated the facts that lead the FTT (FTX) token to lose more than 80% of its value within 24 hours. Here we’ve listed the key points from her in-depth investigation of the token’s historical price collapse:
- Before rival Binance, the biggest cryptocurrency startup in the world, declared plans to acquire the company, FTT, the native token of cryptocurrency exchange FTX, lost the majority of its value when Binance stated it was selling off its holdings of FTT.
- On Monday, the coin was trading at about $22, but by Tuesday afternoon in New York, it had fallen below $5. In just 24 hours, the sell-off destroyed more than $2 billion in value.
- The non-binding arrangement came about as a result of “liquidity shortages” at FTX, according to CEO Sam Bankman-Fried. FTX was valued at $32 billion in a funding round earlier this year.
- The day before Zhao’s tweets, FTT, which peaked at over $78 in September 2021, was trading at about $25. It went below $16 on Monday before dropping dramatically once the deal was made public on Tuesday. The value of the circulating supply of FTT is currently $735 million, down from $2.9 billion on Monday, according to CoinMarketCap.
- According to Bankman-Fried, there had been around $6 billion in net withdrawals from FTX in the 72 hours preceding Tuesday morning, reported Reuters. Net inflows are over tens of millions of dollars on a typical day.
See Related: From Bad To Good To Worse: The Binance And FTX Saga
