FTX Has Made $34M in Trading Fees Since Recent FTT Token Burn Despite Withdrawal Freeze
Cryptocurrency exchange FTX has made $34 million in trading fees since the last time it burned its native FTT token on Oct. 31 even though customers have been unable to withdraw funds this week.
Customer withdrawals were frozen following a liquidity crunch that came after they took out $6 billion in a 72-hour period. Despite this, the exchange has continued to operate.
The company has been in talks with rival exchange Binance over a potential acquisition that now appears to have been scrapped.
Since its inception, FTX has allocated 33% of all trading-fee revenue to burning the FTT token on a weekly basis. FTX failed to report the most recent token burn, which was scheduled for Nov. 7.
The pending burn, scheduled for Monday, stands at $11,397,021 in the form of 3,795,212 FTT tokens, equating to over 1% of the token's total supply.
The largest token burn in FTX's history took place in in May last year when it burned $10.2 million worth of FTT, according to the company's website.