FTX tested 22 USD support in face off Binance comments 📉

The FTX cryptocurrency has suffered after comments from the Binance exchange and its owner Chanpeng Zhao. According to Popular CZ, most of the capital of Alameda Research, a fund controlled by FTX exchange owner Sam Bankman-Fried, comes from the issuance of unhedged FTX tokens and is not backed by fiat currencies:

• Alameda's financial documents were reviewed by CoinDesk and pointed to problems in the form of a non-spinning balance sheet. The investment company is built on a foundation of FTX digital tokens. It has no significant collateral in the form of stocks, cash, Bitcoin or other cryptocurrencies. In an extreme sceanario, a drop in the price of the FTX exchange's token could cause big problems for Alameda and billionaire Sam Bankman-Fried's balance sheet;
• Binance will sell all of its FTX cryptocurrencies 'causing as little impact on the market as possible' with the operation potentially taking months. According to CZ, the move does not target a competing exchange, i.e. FTX, but a number of comments from the industry do not rule out the likelihood of such a case;
• Alameda CEO Caroline Ellison offered Binance to buy back all FTX tokens sold by the exchange at a price of $22. Alameda Reaserch currently has about $8 billion in liabilities ($7.4 billion in loans) and $14.6 billion in assets (currently nearly $5.8 billion in FTX). 

FTX cryptocurrency chart, H1 interval. The FTX token halted declines near $22 i.e. the price at which Alameda Research agreed to buy back the cryptocurrency. Source: xStation5