“Due to recent revelations, Binance has decided to liquidate all remaining FTT in the portfolio.”
— Changpeng Zhao (CZ), CEO Binance
On November 6, 2022 , with just a short tweet, Changpeng Zhao (CZ) - founder and CEO of Binance , made the entire cryptocurrency market shake . That seemingly normal announcement was the opening shot for the historic collapse of the FTX empire .
⚠️ The CoinDesk “bomb” and doubts about Alameda Research
A few days before CZ's tweet, CoinDesk published a shocking investigation, revealing that Alameda Research – an investment fund closely linked to FTX , is holding a huge amount of assets but mainly valued in FTT , a Token issued by FTX itself.
This means that Alameda and FTX may be relying on their own Token as collateral – an extremely risky signal in the financial world.
This article immediately caused confusion in the community about the true solvency of both Alameda and FTX.
💣 CZ “presses the button” – The panic begins
Shortly after, CZ announced that Binance would sell all of its FTT holdings, estimated to be worth hundreds of millions of dollars.
This information was like a fire thrown into the gasoline tank : investors panicked and massively withdrew money from FTX , creating an unprecedented "bank run" in crypto history .
The price of FTT plummeted. FTX, which relies on short-term liquidation , was unable to process withdrawals in time , making the situation worse.
Amidst the chaos, CZ suddenly offered to buy all of FTX to “rescue the market,” but after just 24 hours, Binance backed out of the deal , citing “FTX’s financial problems were beyond control.”
🏚️ The empire collapsed after only 5 days
From an exchange once valued at $32 billion , FTX collapsed in just a few days .
On November 11, 2022 , FTX officially filed for bankruptcy , marking one of the biggest disasters in the history of the cryptocurrency industry .
This event not only caused billions of dollars in damages , but also seriously shook confidence in Centralized Exchange .
To this day, the incident is still known by investors as “November 6 – Crypto’s Black Sunday” .
It's a stark reminder that trust is the market's greatest asset , and that a single tweet can bring an empire crashing down .
Since the FTX shock, a host of projects, funds, and exchanges have had to reassess their asset management models and transparency , while CZ and Binance continue to lead the way – but also face more scrutiny than ever.
November 6, 2022 is not just the day CZ “liquidates Token”, but a historic day that changes the landscape of the global cryptocurrency market .
A hard lesson for the whole industry:
“In the crypto world, liquidation and trust – lose one, and you lose everything.”
