A surprising turn of events befell the cryptocurrency FTX (FTT) as it made a 20% plunge breaking through the $20 price zone in the last hour which is now trading at $15.79 with a market cap of 42.4 billion.
It is understood that FTT lost over $500 million in valuation and $1 billion worth of total erosion occurred after experiencing a drastic fall.
According to Colin Wu, the massive transfer of FTT was identified as being from the Genesis OTT Desk and insisted that the price drop had nothing to do with Binance.
Nevertheless, Binance is said to have sold its remaining holdings of FTT, transferring half a billion of the digital asset to its platform.
Binance's following action has caused concern among investors that it will likely be a similar situation to the LUNA market.
Meanwhile, investors predict that Binance is acting this way as part of its competition with FTT.
Even so, the Chief Executive Officer (CEO) of Binance Changpeng Zhao (CZ) vehemently denied the charge stating that the transfer was only for the liquidation process.
Sticking to that projection, Binance plans to liquidate FTT tokens over the next few months and keep them in the open market.
On the other hand, FTX CEO Sam Bankman-Fried insists that his company is regulated and its finances are audited, and that FTX will never commit any fraud.
