Users Flee FTX? Exchange Sees 47% Drop In On-Chain Balance

The crypto industry is witnessing a new war between exchange giants FTX, led by Sam Bankman-Fried, and Binance-led Changpeng “CZ” Zhao. Over the past week, rumors emerged about the former exchange becoming insolvent and holding an illiquid balance sheet. Related Reading: Tron Transaction Volume Balloons To 5.3 Million In Q3, But There’s Still Doubts Ahead The Binance CEO seems to be fulling speculations. During the weekend, CZ expressed concerns about “recent revelations” around FTX. In 2021, Binance invested FTX and received around $2 billion in BUSD, and the Bankman-Fried supported token FTT. Now, Binance will sell its FTT tokens and liquidate any participation and equity in its competitor. The decision was controversial as CZ constantly speaks about different actors working together to grow the crypto industry. This time is different for the executive, via Twitter CZ wrote: Regarding any speculation as to whether this is a move against a competitor, it is not. Our industry is in it’s nascency and every time a project publicly fails it hurts every user and every platform (…). Running The FTX Bank Despite CZ’s statement, the decision is considered part of a “Bank Run,” when many customers withdraw their money from a financial institution leading to insolvency, against the Bankman-Fried led FTX. So far, the strategy is working. Data from Dune Analytics indicates that the 24 hours...