FTX exchange fixes withdrawal complaints from users when token activity is high

Amid the decline of the token FTT, FTX is currently facing a backlash from users for slow withdrawals. Following the complaint, the cryptocurrency exchange responded via its official Twitter account, assuring users that all was well. However, FTX states that node throughput for Bitcoin withdrawals is limited.

The cryptocurrency community has not accepted the exchange’s explanation, despite a series of tweet threads addressing their complaints. Some users responded with tweets promising support for FTX, while others expressed doubts. A user said the exchange’s response indicated that everything was going wrong.

among them twitter thread, FTX assured users that their matching engines and nodes were running smoothly. It also said that banks are closed on weekends, which slows processing of stablecoins. However, they said they changed the process to improve speed.

Circumstances Surrounding FTX Challenge

Meanwhile, Reddit users expressed concerns about the development of FT. They cited what happened when Celsius suspended withdrawals and misled users before going bankrupt.

The challenge, however, followed the news of Binance liquidating its holdings of FTT, which caused the token’s price to drop by 10%.

Binance CEO Changpen Zhao tweeted on November 6th about his plans to liquidate all FTT holdings. The CEO said the move is a risk management strategy he drew from the lessons he learned from the Terra collapse. On-chain data shows that an unknown wallet transferred his $520 million worth of his 23 million FTT to Binance.

FTX CEO Sam Bankman-Freed commented About the situation, we say it’s time to build the industry. He also paid tribute to his many efforts in building the crypto industry and ended his comment by calling for love, not war.

FTT may be headed for further price declines

While the hype continues, market analysts speculate a serious drop in FTT. Analysts reported from a technical perspective. From the daily chart, the FTT has followed a crescent price trend with a slow upward retracement. This indicates that the tokens formed an inverted cup and handle pattern.

The FTT broke below the support line near $22.50, with volume picking up on Nov. 6. The decline and selling continued on November 7th, breaking even further below the support line. Analysts believe this increases the risk that the bear market will continue in the coming months.

As per the rules of technical analysis, an inverted cup and handle pattern can push the FTT price down by a length relative to the distance between the support and peak levels. Therefore, the target breakdown price for FTT is $16, down from the current price. FTT is trading at 17.82, down in 24 hours.

Featured Image From Pixabay, Charts From Tradingview,com