Binance Considers Acquiring Troubled Competitor FTX
World’s largest cryptocurrency exchange Binance shared a letter of intent for buying out one of its biggest competitors - FTX.
According to Changpeng ‘CZ’ Zhao, Binance’s creator and CEO, this could help solve the liquidity crisis.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
Sam Bankman-Fried (also known as SBF), the creator of FTX, said that now things are falling into place as Binance will be the first and last investor of the exchange.
The terms haven’t been publicly announced and Binance retains its right to withdraw from the deal “at any given time”. CZ said his company has to do its due diligence before finalizing the purchase.
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According to SBF, this bailout could potentially be very positive for the whole crypto industry. He also stated his admiration for Zhao and what he has done for the sector by “creating a global crypto ecosystem” and “creating a freer economic world”. Bankman-Fried added that FTX is “in the best of hands”.
1) Hey all: I have a few announcements to make.
Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
— SBF (@SBF_FTX) November 8, 2022
The crypto mogul said that currently the exchange is working on clearing the problems around customer withdrawals. Zhao tweeted earlier that Binance will sell its FTT holding after the leaked information about Alameda Research’s financial troubles.
After the announcement FTT jumped more than 22% while BNB made a 19.58% upward movement.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
