FTT pumps 40% thanks to Binance fine and is Tether trying to buy into the British government?

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Last Updated on 23 November 2023 by CryptoTips.eu

The billion-dollar fine for Binance (and the stepping down of CEO Changpeng Zhao) continues to reverberate on the crypto market. One of the most notable winners so far appears to be FTT, the coin of the bankrupt crypto platform FTX.

In England, a remarkable legal case is underway before the high court. It is claimed that the company behind stablecoin Tether tried to buy into the Tory party, which has been in charge of Britain’s government for more than a decade now.

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Binance and FTX

After it became known that Changpeng Zhoa, the influential CEO of Binance, would relinquish his position, the market responded by pushing BNB, also known as Binance Coin, some 10% lower. In a very remarkable reaction, investors apparently chose to move their money to FTT, the digital currency of the still bankrupt FTX crypto platform.

Because there had already been talk of a restart of the FTX platform for several weeks in order to try to reduce the company’s debts by gaining new profits (and thus repay former customers), FTT had indeed been on the rise for some time. However purely speculative we might add.

The Binance news from earlier this week added another big jump. At one point on Wednesday, FTT was up 40%.

Again, take note because until further notice, FTX is still bankrupt.

Tether and Tory

For those who are new to the crypto world, we will explain it briefly. A stablecoin is used by investors to provide protection against the volatility that often plagues cryptocurrencies. Stablecoins are linked to existing fiat currencies such as the US dollar or the European Euro. The largest stablecoin is Tether, which is pegged to the US dollar. 1 Tether is always 1 dollar and therefore does not fluctuate.

Tether has become very rich in this way and currently has a market cap of some 84 billion dollars. All this value is countered by existing investments of which only a tiny part are in crypto. Most of the money is invested in US government bonds and term deposits.

According to reporting in the Financial Times this week, Tether is accused of giving around $1 billion to a known Tory donor. The Tories (or Conservatives) are the governing party in Great Britain. So the question everyone in the crypto world is now asking is: was Tether trying to buy influence in Great Britain, a country that is notoriously anti-crypto due to its large (and very classic) financial center, known as ‘The City’?

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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