Raoul Pal, the former head of global strategy at Goldman Sachs (NYSE:GS), is disappointed with Binance’s decision to liquidate its entire token portfolio of the cryptocurrency exchange FTX (CRYPTO: FTT).
What Happened: Pal is concerned that Binance “most opaque cryptocurrency exchanges with no reporting or ownership”, is trying to push another “opaque cryptocurrency exchange” and an overly entangled trading firm (referring to crypto exchange FTX) into insolvency. “It’s nearly impossible to know what’s actually happening, which is unsettling for everyone and the market in general,” he tweeted.
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According to Pal, it's very disconcerting for everyone to realize that it's nearly impossible to know what is happening. “Custody your own stuff and avoid leverage or centralized yield, as people repeatedly learn the same lesson,” he tweeted, after the crypto market turned green, as a result of an intensive sell-off. “If this takes a bad turn, it will set the industry back years in terms of regulation and trust,” he adds.
He advises investors to be careful and hopes the feud between Binance and FTX gets sorted out with more transparency or funding.
Price Action: FTT was trading at $17.07, down 22.65% in the last 24 hours. The apex crypto Bitcoin (CRYPTO: BTC) fell below the $20k mark, down 4.93% and Ethereum (CRYPTO: ETH) declined 5.84% in the past 24 hours, according to data from Benzinga Pro.
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