FTX token (FTT), the native cryptocurrency of digital asset exchange FTX, recorded a minimal decrease of about 1% despite a recent huge sale of about $583 million worth of FTT tokens.
The resilience shown in the token’s price is quite impressive, as it maintains a trading price of $22.4 despite an ongoing drama between FTX and the leading crypto exchange Binance. Usually, when a cryptocurrency gets sold on the secondary market in very large volumes, it faces a possible risk of a price downtrend.
FTT Token Sees 1% Drop
According to an analysis from a researcher at the analytics platform Kaiko, FTT recorded its highest yearly trade volume within the last 24 hours.
According to the chart above, Binance unsurprisingly held the largest share in the trade volume, which was way above $2 million. FTX, on its part, saw a mild trade volume of around $1 million.
FTT’s price resilience is commendable, considering that it lives on only 10 crypto exchanges such as HitBTC and Huobi. Kaiko’s data also revealed that the token has 23 spot markets, which is minimal when compared to top assets such as Bitcoin, DogeCoin, and Solana, which hold 388, 136, and 87 spot markets respectively.
FTX-Binance Drama
The ongoing saga between FTX and Binance came to the limelight over the weekend. A rumor was spread that Alameda Research, the sister company of FTX, held a large number of its assets in FTT. Such dependence on a single crypto token is not financially proper. This is because a severe downtrend in the price of the asset can affect the company’s cash flow.
However, Caroline Ellison, the CEO of Alameda Research, discarded the rumor. She stated that it was only a subset of the company’s assets. Around the same time, Binance announced its plan to sell its entire holdings of the FTT token, including $583 million worth of the token. This was a move to clear off its ties to FTX.
To reduce the impact on the crypto market, Changpeng Zhao, the CEO of Binance, noted that his company would conduct the sale of all its FTT tokens over a few months.
