DigitalX, an Australian cryptocurrency fund, has decided to liquidate its FTX (FTT) token holdings in light of the recent FTX/Binance saga, the Australian Financial Review reports.
The fund, which is listed on the Australian Securities Exchange under the DCC exchange, sold roughly $1 million worth of FTT tokens.
The liquidated tokens constituted roughly 2% of the fund's total holdings. Lisa Wade, the head of DigitalX, says that she did not want to get exposure to the token since the fund is expecting a "quite powerful" short-term blowback.
FTT token is now down more than 32% over the past 24 hours. Bitcoin (BTC), the latest cryptocurrency, also plunged below the $20,000 level due to fears of broader market contagion.
Data from cryptocurrency analytics firm CoinGlass shows that $265.83 million worth of crypto has been liquidated over the past 24 hours.
Last week, the cryptocurrency community started speculating about the financial health of trading firm Alameda Research, which is controlled by FTX boss Sam Bankman-Fried. It was revealed that Alameda's balance sheet consists mostly of FTT tokens.
On Sunday, Binance CEO Changpeng Zhao tweeted that he had decided to sell FTT tokens, which led to a bitter back and forth between the two major crypto players and their supporters.
Earlier today, FTX allegedly stopped processing withdrawals.