The in-house token of major crypto exchange FTX slumped on Tuesday, losing one-third of its value and dragging down other major digital assets, as investors appeared to take fright at talk of pressure on FTX’s financials. The FTX token – which gives holders discounts on FTX trading fees – was last down more than 33% at $14.68, its lowest since early 2021. The token, known as FTT, is the 30th largest digital coin, with a value of $2 billion, according to CoinMarketCap. Bitcoin , the biggest digital token, was down 6.42% at $19,342.00, its lowest in two weeks, and was on course for its worst day since mid-September. Ether , the next largest, was last over 9% lower on the day. FTX has come under pressure after Changpeng Zhao, head of rival exchange Binance – the world’s largest – said on Sunday his firm would liquidate its holdings of the FTX token due to unspecified “recent revelations”. FTX founder Sam Bankman-Fried said the exchange was “fine” and that concerns were “false rumours”. FTX had no immediate comment when contacted by Reuters on Tuesday. Figures from analytics firm Nansen showed a one-day net outflow from FTX of about $630 million, suggesting account holders were also getting their money out.
Read more : Crypto exchange FTX’s token leads major coins in slide as investor jitters rattle market.
