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FTX addresses withdrawal issues amidst token liquidation

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Popular crypto exchange, FTX has addressed numerous complaints emerging from its users over slow withdrawals. The exchange, through a series of Monday Twitter posts, urged users to remain calm, stressing that every operation on its network is working perfectly. However, the crypto exchange noted that node throughput remains restricted to BTC withdrawals.

Notably, FTX also talked about withdrawals of stablecoins on its network. According to the exchange, creation or redemption looks slow at the moment till banks open for the week.

Shortly after FTX issued the statement, many of its users reacted in a mixed manner. Some users of the exchange, in their reactions, pledged support while others appears extremely skeptical. For instance, some users on Reddit expressed worry about the development. They likened the situation to when Celsius, a popular crypto lender halted withdrawals on its network. According to them, the crypto lender first misled its users prior to its collapse.

Binance to liquidate FTX native token

Worth noting, these issues comes at a time in which the exchange is enduring major liquidation of its native token. This, as revealed, manifested as a result of the uncommon battle with rival crypto exchange, Binance. Last Sunday, the CEO of the exchange, Changpeng Zhao announced plans to liquidate the entire holdings of FTX token. According to Zhao, the development became necessary following recent revelations that came to light.

More so, Zhao said hinted that Binance took the decision as part of its risk management measures. He said the exchange took lessons from the collapse of LUNA. Further, the CEO reacted to the recent actions of FTX founder and CEO Sam Bankman-Fried. Recall that Bankman-Fried was alleged to have lobbied against centralized finance.

According to findings, Binance liquidated FTX tokens owing to reports surrounding a leaked balanced sheet from Alameda Research. The sheet revealed that billions of dollars of Alameda assets, owned by Bankman-Fried looks tied up in FTX token. Occasioned by this liquidation, the native token is expected to experience a plunge in its value.

Meanwhile, Zhao insisted that Binance would not support people who lobby against other industry players behind their backs. According to reports, the amount of FTX tokens transferred to Binance from an unknown wallet is worth $520 million. In a reaction, Bankman-Fried emphasized that the time has come up to build up the space. He further that he respected the efforts of the work of many actors in the industry, including Zhao.

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