FTT token plunged by more than 50% after the announcement of the Binance acquisition. Nearly $500 Million have been liquidated in the last 4 hours.
The crypto market is going through the most dramatic developments. FTX and Binance were in a fierce war before Sam Bankman-Fried, the CEO of FTX, announced the truce.
Both longs and shorts are being liquidated with volatility led by FTT.
According to data from CoinGlass, nearly $500 Million have been liquidated in the last four hours as of writing. FTX token (FTT) pumped almost 38% to nearly $21 after the announcement of the Binance Acquisition. This liquidated the short positions of traders.
However, in the following hours, FTT is trading at around $4, nearly 78% down from $21. The decline liquidated the long positions of the traders.
Not just FTT, even BTC is down by 10% from the high of $20,700. Total longs worth over $360 Million and shorts worth over $122 Million are liquidated as of writing. BTC went as down as $17,100
The CZentralization of the crypto market.
The sentiments were positive after the truce between FTX and Binance; hence the market pumped. But shortly, the community realized that this meant an increased market share for Binance. There are questions about how is it decentralization if the Binance is the last exchange left.
While some praise CZ, stating that their respect for CZ increased on how he bought their biggest competitor overnight, others accuse him of manipulation. With these, the community speculates that the crypto market has entered a monopoly and is bound to suffer. Decentralization became centralized. A Twitter user commented that CZ Binance and SBF might face jail time or a fine for market manipulation.