The post Breaking! Binance To Finally Acquire FTX To Resolve Liquidity Crunch appeared first on Coinpedia Fintech News
A lengthy public war of words between two cryptocurrency exchange giants may come to an end as Binance is now all set to acquire its rival FTX.
The cryptocurrency sector has witnessed a profound impact of the current turmoil caused by the leaked balance sheet of Sam Bankman-Fried (SBF) owned trading platform Alameda Research.
The balance sheet claimed that all assets of the trading firm owned by FTX are locked with FTT tokens which are worth around $3.2 billion, which may result in another crypto market crash after the historical impact of Terra’s LUNA crash in May.
End Of War After Binance’s Acquisition of FTX!
Following the recent news from Binance’s CEO Changpeng Zhao about selling off FTX’s native token FTT holdings, Sam Bankman-Fried reached out to Binance for help to recover from the current situation as the founder is looking for multiple ways to save FTX from a death dance.
Recently, Bankman-Fried tweeted, “We have come to an agreement on a strategic transaction with Binance for FTX.com. Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in.”
Following this, Binance responded positively as CZ issued his statement regarding the acquisition of FTX.
According to him, Binance is ready to help out FTX over its ‘significant liquidity crunch’ and signed a non-binding letter of intent to acquire FTX, which came as a surprising twist amid the current drama of the FTT token.
CZ said, “To protect users, we signed a non-binding LOI, intending to fully acquire FTX and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
However, the total value of the deal is not disclosed yet. FTX may be finally in a safe hand as SBF finds a sigh of relief by saying,
“I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.”
FTX Finally Goes Into Safe Hands
FTX founder Sam Bankman-Fried said, “A huge thank you to CZ, Binance, and all of our supporters. This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.”
The acquisition of FTX by Binance is a huge surprise for the crypto industry amid CZ’s continuous dumping of FTT tokens. Following the acquisition, the FTT token is almost up by 40% in the last 30 minutes, a significant change after a deadly rally over the previous three days.
The acquisition is anticipated to take out FTX from the mud of the current bearish rally; however, the crypto exchange giant will remain independent of Binance.