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There are discussions that last a lifetime. And there are disputes that only have a life of a few hours. Unexpectedly, Changpeng Zhao, founder and CEO of Binance,
There are discussions that last a lifetime. And there are disputes that only have a life of a few hours. Unexpectedly, Changpeng Zhao, founder and CEO of Binance, advertisement this tuesday rival will buy FTXThe world’s third largest cryptocurrency exchange by volume, but facing a liquidity crisis.
This unexpected move comes shortly after Zhao. make sure He reported on Twitter that Binance will liquidate all of its FTX token, “due to recent disclosures that have come to light.” The message did nothing but bolster rumors of an impending crisis in the rival exchange and investors’ fears of mass withdrawals.
“This afternoon, FTX asked us for help. There is a major liquidity crisis. We sign an LOI to protect users [carta de intención] Non-binding to fully acquire http://FTX.com and help meet the liquidity crisis. we will do DD [diligencia debida] It will be completed in the next few days,” Zhao said on Twitter this afternoon.
Binance’s founder did not give much details, but said that Binance could withdraw from the deal at any time. He also explained that the operation will take time to complete and they will assess the situation in real time. He also warned that the FTT token would acquire “highly volatile” behavior in the days the deal is developed.
This afternoon FTX asked us for help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI to fully acquire https://t.co/BGtFlCmLXB and help clear the liquidity crunch. We will do a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) 8 November 2022
Sam Bankman-Fried also announced his stance on Twitter. Founder and CEO of FTX to express her thanks CZ, Binance and all its followers. “CZ has done and will continue to do an incredible job building the global crypto ecosystem and creating a freer economic world.”
If Bankman-Fried price That FTX is working to eliminate the withdrawal workload, a task that will “eliminate the liquidity crisis”. It also sought to give investors peace of mind by ensuring that “all assets are covered” in the agreed transaction with Binance. It should be noted that Binance and FTX will remain separate companies.
As we announced this morning, Bankman-Fried also founded Alameda Research, a cryptocurrency trading firm that puts some trust in FTT. With the token price falling $25.47 to $14.32Some consulting firms, including Bernstein Research, have suggested that Alameda’s business operations may affect customers’ trust in FTX.
The loss of trust in FTX and its token with the stroke of a pen has raised fears that there will be an impact on other cryptocurrencies; That’s not very heartwarming, considering that most cryptocurrencies fell by an average of 60% during the “crypto winter.” We’ll have to wait to find out how the crypto market will evolve and what impact Binance’s acquisition of FTX will have.
Images: Binance | FTX
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Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
