While the effects of the lawsuit filed by the SEC against Binance continued, CZ’s statement that “We did not sell FTX Token (FTT)” brought along many theories.
The negative repercussions of the lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance for violating the Securities Act are not over. The SEC, which made various accusations against CZ, included more than 10 cryptocurrencies from the relevant case file, qualifying them as securities.
The response from the CZ front to the event, which became more complex with each passing day, was not delayed. Making a striking post on his Twitter account, CZ said, “Binance did not sell BTC or BNB. In fact, we still have FTT,” he said. While there was such a chaos in the market, it was wondered why CZ kept the token of the FTX exchange, which declared bankruptcy months ago.
An Effort to Take a Bad Example and Reassure?
Binance, which got into trouble with the SEC, has lost a large number of users since the start of the case. The decrease in the concept of users, which is one of the main criteria for an exchange to generate income, directly put Binance and CZ in danger. Trying to reassure Binance users and other crypto investors with his posts on Twitter, CZ said, “Binance did not sell BTC or BNB. In fact, we still have FTT,” he said.
Why Binance declared bankruptcy on November 11, 2022, and why they still include FTT, the token of FTX, in their portfolios created a question mark in the minds of investors. CZ, who made a statement when FTX was experiencing liquidity and was on the way to bankruptcy, made a statement as “We can buy FTX”.
However, neither CZ nor Binance took any action on the issue. While there have been problems such as the pressure of the SEC and the inability of the stock markets to find liquidity lately, CZ’s evaluation of events in a different way and giving the example of FTT seems like a psychological improvement effort.
Making a statement by referring to one of the chaotic events in crypto history, CZ may have emphasized that he did not sell FTT despite this event and may have wanted to reassure other altcoins. Emphasizing that he does not pay attention to the fud news and continues to trust the sector with his 4 trends in his Twitter posts, CZ tries not to create a panic atmosphere for investors by emphasizing that despite the FTT collapse, which is one of the worst examples, Binance did not sell tokens.
FTX Exchange May Return To The Fields: A Possible CZ and Binance Support
According to the information published by Reuters, FTX, which declared bankruptcy in November 2022, plans to reactivate the stock market in the second quarter of 2023. At an April 12 hearing in the United States District of Delaware Bankruptcy Court, Sullivan Cromwell’s attorneys representing FTX said the exchange had recovered approximately $7.3 billion in assets. With these reports, a sudden increase of 120 percent was observed in the price of FTX’s token FTT.
A March filing from the exchange’s creditors reported that FTX had approximately $4.8 billion in planned assets as of November 2022, and an investigation into the assets was ongoing. According to the legal team, FTX will consider restarting its operations. In addition, FTX CEO John Ray said in an interview in January that he aims to revive FTX.
Considering all these situations, CZ and Binance may want to establish dominance over bitcoin FTX, which may be operational again, and incorporate the company. Considering that FTX, which was seen as a competitor to Binance at the time and creating a great excitement in the market, may very unlikely be able to challenge Binance again, CZ and Binance may acquire FTX and take a stronger position in the crypto industry.
He may have wanted to establish trust in the project, stating that he did not sell the token because FTX activities could begin. Thus, crypto investors can view FTT more positively. Adding FTT to the confusion in the crypto industry, CZ confused them. The steps regarding FTT and FTX from Binance and CZ are closely followed by the crypto communities where it may come.
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