Binance Sets To Buy Cryptocurrency Platform, FTX

Binance, the world’s biggest cryptocurrency platform, has agreed to buy its financially-troubled rival FTX.com, according to an announcement Tuesday on Twitter.

In a tweet, Binance chief executive Changpeng Zhao said the group had signed a non-binding letter of intent “to fully acquire FTX.com”, which is suffering from “a significant liquidity crunch”.

No financial terms were disclosed for the proposed deal, whose announcement came as bitcoin and other cryptocurrencies initially slumped Tuesday on fallout from FTX’s woes.

Binance Sets To Buy Cryptocurrency Platform, FTX

 

Binance has offered to step in after revealing that it was liquidating its holdings of FTX’s FTT token amid concerns about FTX’s finances.

Bitcoin slid more than five percent, trading back under $20,000 before recovering, while FTX’s FTT token slumped 25 percent to its lowest levels since early 2021.

The crypto industry is still licking its wounds since the so-called stablecoin TerraUSD and a linked token, Luna, collapsed in May this year, knocking tens of billions of nominative value off the market.

The slump for bitcoin meanwhile comes after recent strong gains for the world’s leading cryptocurrency.

It’s unclear whether the proposed merger will be allowed or how the combined business will be organized.

• This comes as a great shock considering that FTX and Bankman-Fried have spent a significant portion of this year purchasing the distressed assets of crypto enterprises that have been decimated by falling cryptocurrency values in recent months.
• The larger cryptocurrency market is currently booming as well amid indications that FTX won’t implode due to alleged liquidity problems.
• Several cryptocurrency experts on twitter opine, FTX.COM was facing liquidity challenges which may have precipitated in this sale.

Immediate Impact: In light of the recent news, popular currencies like Bitcoin, Ethereum, Solana, Dogecoin, and others have all seen large price increases.

• However the impact of the news shows BNB, Binance’s coin is currently up 8.16% at the time of writing this article while.
• Bitcoin was down 4.32% and ETH is down 4.4% trading at $19,800 and 1510 respectively.

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