Binance Launches a Speculative Attack Against FTX, and Wins

After less than 48 hours of stop-hunting for FTX’s liquidation target, Binance successfully depressed the assets of its largest competitor.

Off the heels of a CoinDesk piece that leaked Alameda’s balance sheet conditions, it was discovered that large portions of their holdings are little more than vaporware.

The FTT token was invented by Alameda’s sister company, FTX, and represents a large part of Alameda’s reported $14.6 billion balance sheet in one form or another:

$3.66 billion | Unlocked FTT
$2.16 billion | FTT Collateral
$292 million | Locked FTT

The trading desk’s net equity consists mostly of an internally-created-out-of-nowhere token rather than a more liquid and sought-after base money like dollar deposits or Treasuries. This revelation sparked concern among those with exposure. One of which was Binance, whose CEO took to Twitter to announce plans to eliminate these now-unwanted risky holdings.

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After less than 48 hours of stop-hunting for FTX’s liquidation target, Binance successfully depressed the assets of its largest competitor.