FTX addresses user withdrawal complaints amid major token movement

Cryptocurrency exchange FTX took to Twitter to address user complaints about slow withdrawals. FTX assured users that everything is fine with the matching engine, although node throughput is limited for Bitcoin (BTC) withdrawals.

In the series of tweets, the exchange also addressed stablecoin withdrawals, saying redemptions or creations could be slow until banks open for the week and threads are cleared.

Meanwhile, the community on Twitter had mixed reactions regarding FTX’s response. Some users tweeted their support for the exchange while others expressed skepticism:

Telling everyone how well you are is the first red flag that you are not.

— dogterdogter (@dogterdogter)

Reddit users have also expressed concern over developments likening the situation to Celcius halting withdrawals and deceiving its users before the platform collapsed.

These issues come as the exchange faces major liquidations of its native FTX token (FTT) following an unspoken feud with rival exchange and blockchain developer Binance.

Changpeng (CZ) Zhao, CEO of Binance, said the company will liquidate all of its holdings in FTT. In a Nov. 6 tweet, CZ said the move was the result of “recent revelations that have come to light.”

CZ’s follow-up tweets called the move a kind of risk management with lessons learned from LUNA’s collapse earlier this year. He also commented on recent actions by FTX Founder and CEO Sam Bankman-Fried, who allegedly lobbied against centralized finance. In a tweet from CZ, he added:

“We will not support people who lobby other industry players behind their backs.”

According to on-chain analysis, approximately 23 million FTT ($520 million) was transferred to Binance from an unknown wallet.

Bankman-Fried also tweeted his own response to the situation, in which he stressed that it was time to build space. Also saying he respects the work of many in the industry, including CZ.

5) Because I respect the hell of what you all have done to build the industry as we see it today, whether they reciprocate or not, and whether or not we use the same methods.

Including CZ.

Either way, as always, it’s time to build.

Make love (and blockchain), not war.

— SBF (@SBF_FTX) 

In light of the liquidations and community buzz, market analysts are speculating that FTT could face serious price drops. At the time of writing, the price is hovering around $22.60.