Amid the decline of its token FTT, FTX is currently experiencing backlashes from users over slow withdrawals. Given the complaints, the crypto exchange responded on its official Twitter account, assuring users that all was well. However, FTX mentioned that node throughput for Bitcoin withdrawal is limited.
The crypto community didn’t buy the exchange’s explanations despite a series of tweet threads in which it addressed their complaint. While some users responded with tweets pledging their support for FTX, others expressed doubts. A user said the exchange’s response indicates all is not well.
In its Twitter threads, FTX assured users that matching engines and nodes are running smoothly. It also said that stablecoins processing is slow because banks are closed for the weekend. However, they said they switched up the process to improve speed.
Circumstances Surrounding FTX Challenges
Meanwhile, Reddit users expressed their concerns regarding the development of FT. They cited what happened with Celsius suspending withdrawals and misleading users before going bankrupt.
However, the challenges follow news of Binance’s intention to liquidate its FTT holding, which caused a 10% decline in the token’s price.
Binance’s CEO Changpen Zhao tweeted on November 6 about their plans to liquidate all FTT holdings. The CEO stated that the move is a risk management strategy, taken from lessons learned from the Terra collapse. On-chain data shows that an unknown wallet transferred 23 million FTT worth $520 million to Binance.
FTX CEO Sam Bankman-Fried commented on the situation, saying it is time to build up the industry. He also expressed respect for the efforts of many in building the crypto industry and ended his comment with a call for love, not war.
FTT Might Be On Its Way To Further Price Slump
While all the fuss is going on, market analysts speculate a severe decline for FTT. The analysts reported from a technical perspective. From the daily chart, FTT followed a crescent-shaped price trend, including a slow upward retracement. That indicates that the token formed an inverse-cup-and-handle pattern.
FTT fell below the support line near $22.50, followed by a volume increase on November 6. The decline and sell-off continued on November 7, falling further below the support line. The analysts believe this raises risks that the bearish phase will continue in months to come.
Following the rule of technical analysis, the inverse-cup-and-handle pattern could push the FTT price down by length relative to the distance between the support and peak level. Hence, the target breakdown price of FTT is $16, a decline from the current price. FTT is trading at 17.82, with a 24-hour drop.