Binance CEO Changpeng “CZ” Zhao threw an unexpected roundhouse at rival exchange FTX on Sunday, declaring his company would dump its holdings of FTT. That’s the token that FTX customers can use to obtain perks and discounts on the platform, but whose trading price also serves as a proxy for the prospects of FTX as a whole.
Binance’s decision to dump the token, explained CZ, was just a matter of prudence, alluding to a leaked balance sheet that showed FTX’s sister company, Alameda Research, held a large position in FTT. “Liquidating our FTT is just post-exit risk management, learning from LUNA,” CZ wrote on Twitter, referring to the infamous algorithmic stablecoin that imploded this spring.
