On Tuesday, November 21, the BNB price faced adverse headwinds following the announcement that Changpeng Zhao, the founder Binance crypto exchange, was stepping down from his role as CEO. This move triggered a crash in the price of BNB, the native token of the exchange. However, around the same time, there was a noticeable increase in the price of FTT, the native token of the bankrupt FTX exchange. This has led to speculations that crypto investors may be dumping their BNB for FTT.
Crypto Traders Moving From BNB To FTT
In a report that was posted by the on-chain tracker Santiment, there was a noticeable shift in the BNB price toward the FTT price. In what can be categorized as a red day for the crypto market, a few coins saw an upside and FTT was one of those.
As the onslaught continued, the BNB token had fallen around 10%, but the FTT token at the same time was seeing positive headwinds of around 7%. It was one of the only tokens to return to the green territory and has maintained a rather consistent uptrend since then.
Given this, Santiment speculates that traders may be dumping their BNB for the FTT token at this time, especially as the Binance exchange is currently shrouded in controversy. “
Although many see the #Binance news as the main culprit for one of the biggest retraces of the year, the fact of the matter is that #altcoins had already seeing shrinking market caps. Interestingly, it appears some traders are swapping their $BNB for @FTX_Official’s $FTT,” the tracker said.
FTX Token Leads Market Gains
The speculation that investors are leaving BNB for FTT is not without merit, especially given the fact that FTT has been on a rapid rise since the Binance settlement was announced. According to data from CoinMarketCap, the FTT Token is already up more than 12% in the last day. This makes it the top-gaining cryptocurrency in the market over the last day.
In contrast, BNB has suffered at the hands of bears who continue to dump the token. CoinMarketCap data puts it as the second top-loser in the last day, with 9.38% losses, coming up behind PancakeSwap’s CAKE with 9.82% losses.
As the Binance exchange adjusts to its new normal under its new leadership, it is expected that this downside will continue until the market stabilizes. However, Santiment notes that a quick reputation recovery could see the price of the altcoin bounce back quickly as trader FUD remains on the high side.
BNB is currently trading at $233 after recovering from its $223 low on Tuesday. Considering that the crypto exchange has been asked to pay $4 billion in fines to regulators, the altcoin looks to be holding up quite nicely.
