Binance, the world’s biggest crypto exchange in terms of volume, has signed a letter of intent to buy its rival and the third-biggest exchange by volume, FTX. A CoinDesk story that sparked rumors regarding FTX’s balance sheet led to the acquisition. The agreement’s terms weren’t made public.
What does Binance have to say?
Binance CEO Changpeng Zhao stated on Twitter, “This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.”
“This afternoon, FTX asked for our help,” tweeted Binance chief executive Changpeng Zhao. “There is a significant liquidity crunch. To protect users, we signed a non-binding (letter of intent), intending to fully acquire FTX.com.”
Concerns regarding FTX’s financial stability arose after Binance disclosed that it intended to sell its token holdings over the weekend. Bankman-Fried tweeted on Tuesday that “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 FTX confirmed the deal.
More about the deal
The agreement represents the most recent last-ditch effort to save a cryptocurrency this year as investors fled riskier investments in the face of rising interest rates. From its peak, the cryptocurrency market has decreased by around two-thirds, reaching $1.07 trillion.
Additionally, it emphasizes Bankman-sudden Fried’s turn of events after he established himself as the industry’s savior by saving rivals who had encountered difficulties earlier in the year.
