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Binance CEO Changpeng Zhao: FTX Lobbying Against Crypto Industry

The other day, we revealed that a lot of crypto traders are scurrying to hedge against a potential slide in crypto exchange FTX’s native token, FTT. This is happening following Binance’s decision to liquidate FTT holdings and the controversy surrounding Alameda’s balance sheet.

It’s also been revealed that open interest, or the dollar amount dedicated to futures and perpetual futures tied to FTT, has more than doubled. Official reports noted the fact that the amount went from $87.56 million to $203 million since early Asian hours, reaching a 12-month high, according to CoinGlass.

“The funding rate or the cost of holding bullish long positions or bearish short positions has dropped sharply to an annualized -36%, per data provided by Matrixport Technologies. A negative funding rate implies shorts or bears have the upper hand and are willing to pay funding to longs to keep their positions open,” according to notes revealed by CoinDesk.

Binance CEO addresses FTX issues

According to the latest reports coming from he online publication the Daily Hodl, in a Twitter thread, Zhao details how last year, Binance decided to sell its equity in FTX. The exchange got billions in stablecoins and the exchange’s native token FTT.

He now said that Binance is getting rid of the assets received in the exit with “revelations” coming to light.

“As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.”

As you probably know by now, FTX is facing rumors and speculation that it may be insolvent and is relying too much on holdings denominated in FTT, although the exchange strongly denies it.

Check out the original thread that CZ shared on Twitter just to learn the complete details about all this. Stay tuned for more exciting news from the crypto space.

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