Binance’s Changpeng Zhao Rejects Alameda’s FTT Buyout Offer

Binance's Changpeng Zhao Rejects Alameda's FTT Buyout Offer

Binance’s CEO is not interested in Alameda’s offer to buy out Binance’s FTT token holdings.

Cryptocurrency exchange Binance founder and CEO Changpeng Zhao (CZ) denied Alameda Research’s offer to buy out all of the company’s FTT token holdings.

On November 7th, when asked whether he would agree with Alameda’s offer to sell Binance’s FTX token (FTT) holdings for $22 per token, CZ stated: “I think we will stay in the free market.”

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The offer was proposed through Twitter by Alameda Research CEO Caroline Ellison as a way to minimize market impact. However, after declining the bid, it appears that Binance is sticking with its original plan to liquidate all of its FTT token holdings slowly through a few months.

The news about Binance’s plans to liquidate around $529 million worth of FTX tokens broke on November 6th. In his extensive Twitter thread, Changpeng Zhao noted that the decision to liquidate FTT tokens is “just post-exit risk management.”

In 2019, Binance sold FTX all of its stakes for $2.1 billion, “USD equivalent in cash (BUSD and FTT).” In a separate Twitter thread regarding the matter, Binance’s CEO noted:

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.

Moreover, Changpeng Zhao added that the decision was made due to “recent revelations that have come to light.” Although the CEO avoided openly pointing out the issue, one can assume that Zhao is talking about leaked Alameda Research balance sheets.

The sheets allegedly reveal that Alameda Research holds around $5.8 billion worth of FTT tokens, approximately $2.16 billion in “FTT collateral,” and $3.66 billion in “unlocked FTT.”

It is worth noting that Changpeng Zhao’s decision to liquidate FTT token holdings resulted in many investors transferring their funds. According to various data, on November 7th, investors moved around $128 million in crypto.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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