Everything you need to know about Binance, FTX Debacle

    Binance CEO Changpeng "CZ" Zhao announced on Sunday that the exchange would be selling off its FTT token holdings from FTX.

    As most people have noticed, Changpen Zhao, otherwise known as CZ, founded and operates the world’s largest cryptocurrency exchange, Binance. Thanks to this and according to Forbes, he has amassed a net worth of $18.6 billion. Someone who has come into the space more recently, Sam Bankman Fried, otherwise known as SBF, created the seventh-largest cryptocurrency exchange in the world, FTX. Again, thanks to this and according to Forbes, SBF is worth around $15.3 billion. Recently, CZ made a Tweet that he plans on liquidating over $500 million in FTT tokens (the native token to FTX exchange). In the Tweet, he also made a dangerous reference that it is effectively risk mitigation and an exit strategy from their equity and token holdings in FTX. 

    This sparked so much interest so quickly because should CZ sell these tokens, the price of FTT would crash to the degree that would harm FTX Exchange. SBF was quick to respond, stating a competitor was spreading false rumors. The comment was an obvious nod to CZ, and SBF even acknowledged him and said he would like to collaborate in the blockchain space. 

    CZ has a history of dropping projects and having one-sided relationships with companies, but suggesting that SBF or FTX Exchange have ill intent is downright hurtful. More and more people are on the “make love, not war” side, and if CZ does decide to sell his tokens, SBF has come to terms with that.

    In the end, these are two of the wealthiest people in the world who both own competing exchanges. They can coexist, and the selloff of FTT tokens will not destroy a business. In fact, SBF has gone on such a huge buying spree of distressed companies, including Liquid Exchange, that it is estimated FTX is only 10% of SBF’s empire. 

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