FTX only represents like 1/10th of the SBF kingdom's revenue. Most has been made by aggressive trading strategies at Alameda. FTX has been trading on that revenue to prop up and build FTX - by trading Alameda's tether for FTX's FTT. FTT has zero utility though and there is virtually zero demand for it. Whereas with BNB you have all of the added utility of paying for goods/services with projects built on Binance Chain (BNB chain?)

So unlike BNB, FTT it is an illiquid asset. And now the tether coffers at Alameda are bare. FTX and Alameda have now been reduced to flywheel/circle-jerk trading FTT back and forth to create illusion of value, liquidity, and revenue. This was uncovered by a CoinDesk report this week and built on by research by Dirty Bubble Media.

A lot of people don't know this, but CZ actually incubated FTX two years ago. They wouldn't be here today without Binance. Then a year ago, Binance decided to cash out. It turns out that they were paid $2.4B by Sam in Tether and FTT. That should have set off alarm bells for CZ though. Why would he accept FTT instead of straight tether? Now we know why, Sam desperately needed to keep the value of FTT inflated in order to continue attracting outside investors with inflated valuations (based on FTT holdings in part) to get real cash injected.

Now CZ has seen the evidence that FTT is just a massive circle jerk/flywheel scheme, so he noped out of it and started to sell his position so that he wasn't left holding bags.

It's now FASCINATING (but not surpising now) that Alameda offered to buy all of Binance's FTT in a closed-door deal for $22. Because if CZ sells it on the open market, the price of FTT will begin to fall.

Will be interesting to see how CZ plays this. On the one hand, another major project failing is bad for the industry. On the other hand, it has become blatantly apparent that FTX is not a force for good in the industry and we might be better in the long run if bad actors fail fast. Also, it's not a good look for the industry if CZ agrees to skirt the free market and agrees to this back-door deal. Those types of deals are anti-competitive and therefore anti-user.