CZ also added that the tokens will be dissolved slowly in the coming months to lower the market impact. If it liquidates the FTT tokens in one go, it will cause a huge loss to its users.
Binance and FTX are direct competitors in the crypto market. Recently, both CZ and Bankman-Fried competed to buy bankrupt firms to save the Web3 industry.
A lot of people assumed the selling of FTT tokens might be due to the competition but CZ denied the speculations saying Binance had held onto these tokens for a long time.
He also added, “Our industry is in it’s nascency and every time a project publicly fails it hurts every user and every platform.”
In response to this, Caroline Capital announced on Twitter that Alameda would buy the FTT tokens from Binance at a discount price of $22 million, to which the exchange is yet to reply.