SBF says ‘FTX is fine. Assets are fine’ with over $1B in excess cash amid rumors of liquidity crunch
FTX CEO Sam ‘SBF’ Bankman-Fried has taken to Twitter to name out a “competitor” for “making an attempt to go after us” and reassured the trade that regardless of the try, “FTX is ok. Property are advantageous.”
2) FTX has sufficient to cowl all shopper holdings.
We do not make investments shopper belongings (even in treasuries).
We have now been processing all withdrawals, and can proceed to be.
Some particulars on withdrawal pace: https://t.co/tSjhJW3JlI
(banks and nodes will be sluggish)
— SBF (@SBF_FTX) November 7, 2022
The tweet risk seems to be a response to rumors and hypothesis of liquidity points at FTX and Alameda Analysis. The rumors might have performed a job in Binance’s latest resolution to liquidate its $500 million in FTT tokens over the weekend.
SBF expanded additional by claiming that FTX “has sufficient to cowl all shopper holdings” and can proceed to course of all withdrawals. He closed his thread with the next assertion, implying that the aforementioned “competitor” may very well be Binance:
4) I would find it irresistible, @cz_binance, if we might work collectively for the ecosystem.
— SBF (@SBF_FTX) November 7, 2022
CZ had posted over the weekend that he deliberate to liquidate Binance’s FTT tokens as a result of “latest revelations which have come [sic] to gentle” however wished to verify the “market influence” is minimal.
Cope, a content material creator at The Block, responded to SBF with a picture of a meme displaying a home on fireplace alongside the caption, “FTX is ok,” as a primary instance of the group’s view on SBF’s assertion.
Curiously, a lot of the dialog round liquidity points targeted on Alameda Analysis relatively than FTX. SBF’s latest assertion didn’t reference Alameda, as a substitute specializing in making certain the crypto group acquired the message that “FTX is ok.”
Questions of Alameda’s solvency standing might proceed till additional proof is offered to showcase that the corporate has ample belongings to help its loans ought to the FTT token proceed to fall in value.
The worth of the FTT token continued to fall going into the U.S. market open on Nov. 7, hitting $22 within the early hours. The token value recovered on Nov. 6 following Ellison’s bullish assertion that Alameda might purchase all of Binance’s FTT tokens at $22. Nonetheless, any restoration has since been thwarted as the worth struggles to carry $22.
As of press time, CZ has not publicly commented on SBF’s assertion.
