FTT Futures Interest Boom: Binance to Liquidate FTX Token Holdings

Binance is making headlines again due to the latest move that the crypto exchange is making. Check out the latest reports below.

It’s been just revealed that traders are scurrying to hedge against a potential slide in crypto exchange FTX’s native token, FTT. This comes in the wake of Binance’s decision to liquidate FTT holdings and the controversy surrounding Alameda’s balance sheet.

It’s also been revealed that open interest, or the dollar amount dedicated to futures and perpetual futures tied to FTT, has more than doubled. According to the official reports, the amount went from $87.56 million to $203 million since early Asian hours, reaching a 12-month high, according to CoinGlass.

“The funding rate or the cost of holding bullish long positions or bearish short positions has dropped sharply to an annualized -36%, per data provided by Matrixport Technologies. A negative funding rate implies shorts or bears have the upper hand and are willing to pay funding to longs to keep their positions open,” according to notes revealed by CoinDesk.

“FTT’s funding rate has dropped to -36% annualized as opening interest has doubled. Many new shorts seem to have been put on,” Markus Thielen, head of research at Strategy at Matrixport, said. ”

He continued and explained the following:

“Trading volumes in the FTT spot market has increased from $58 million to $3 billion.”

The largest crypto exchange platform by volume in the world is reportedly looking into the benefits of acquiring banks.

According to a new report by Bloomberg, Binance is weighing the pros and cons of purchasing banking institutions as traditional finance becomes increasingly interconnected with the digital assets industry.

Binance CEO Changpeng Zhao stated not too long ago that the firm is planning on bridging the gap between digital assets and traditional finance. Stay tuned for more news.