Blockchain

Binance is Not In “a War” With FTX, Says Co-Founder Yi He

In an explanation on Twitter, co-founder and chief customer service of Binance exchange Yi He claimed that Binance is not in a war with FTX and has no intention of engaging in drama.

Following Binance CEO Changpeng Zhao or CZ's announcement that the exchange would start selling its remaining FTX's FTT exchange token holdings, rumours declaring both exchanges might be beefing with each other have been going around.

The speculations started to look real, specifically when FTX CEO Sam Bankman-Fried took to his Twitter and said,

"A competitor is trying to go after us with false rumors. FTX is fine. Assets are fine. FTX has enough to cover all client holdings. We don't invest in client assets (even in treasuries). We have been processing all withdrawals and will continue to be."

As a result, on Monday, Binance Co-founder Yi He decided to clear the air. Yi He tweeted, "Recently, the Portfolio Management team at [Binance] Labs decided to sell FTT based on the risk-control metrics we monitored." She added saying a public announcement of such a decision evinces that Binance Labs "always respond to what our community asks in a transparent and direct way."

In short, Yi He concluded, "The point we'd like to stress is that the decision to hold or sell a token depends on one's own risk appetite and judgment. Our decision to sell FTT is a pure investment-related exit decision, which has nothing to do with "a war," and we have no intention to engage in drama."

Speaking of Binance, the exchange has been dipping its feet into different industry sectors over the past months. Last month, CZ disclosed in an interview with Bloomberg its plan to consider buying banks with $1 billion.

Though CZ did not specifically disclose the targets, he stated he was open to minority investments or full takeovers. Zhao also pointed out that investment banking is a reasonable strategy for Binance because when partnering with banks, Binance usually attracts many new users, which will also boost the bank's valuation.

Image source: Shutterstock

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