The world’s largest cryptocurrency exchange is buying FTX from rival exchanges. Binance CEO CZ announced on Twitter that they have reached an agreement on the acquisition.
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
Binance buys FTX
The conflict in the middle of the exchanges ended with Binance’s decision to buy FTX. According to Binance CEO CZ, FTX’s “liquidity crunch” will be alleviated a bit thanks to the acquisition. FTX CEO Sam Bankman-Fried also made statements on Twitter that reconciliation would be beneficial for the ecosystem.
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 rules of the deal have not been made public now. Binance stated that after the purchase, FTX will “always” have the right to withdraw from the contract. In the midst of this, CZ said they needed a little more time before completing the contract. According to Bankman-Fried, the deal will be advantageous for the entire division. Additionally, he praised Zhao for “creating a freer economic world” and “doing an incredible job of building the global crypto ecosystem.”
The announcement of the discontinuous settlement amid the two major exchanges comes just a day after SBF claimed on Twitter that FTX and its holdings were “good” and dismissed reports of liquidity problems as “false rumors.” The FTX CEO also urged CZ to ensure that exchanges work together “for the ecosystem.” However, some of the Binance CEO’s social media responses suggested that he did not support the agreement. CZ replied to Alameda Research’s offer to buy all the FTTs they would sell at $22, saying it would “remain in the free market”.
FTT investors took a deep breath
After the news, both Bitcoin, BNB and FTT prices rose significantly. Bitcoin, with an increase of more than $ 1000, exceeded $ 20 thousand 600, while BNB gained 24 percent and FTT about 30 percent. In particular, FTT had the opportunity to recover up to $ 18 after falling to $ 15 during the day.
If the agreement between FTX and Binance moves forward, it potentially represents a major turning point in the crypto market. Some reports have reported that Coinbase is planning to buy the domestic cryptocurrency exchange BtcTurk for $3.2 billion. FTX is reportedly raising $1 billion to explore additional acquisitions, recruiting mostly crypto-related businesses, aiming to acquire Bitvo as a module for the Canadian market entry.
