A huge twist in the FTX / Binance deal. On Twitter, Sam Bankman-Fried (CEO of FTX) and Changpeng Zhao (CEO of Binance) said they had reached an agreement. The giant Binance could be on the verge of buying FTX.
FTX to be absorbed by Binance
Binance is said to be on the verge of acquiring FTX, as the platform is currently experiencing a major liquidity crisis.
The information comes directly from Changpeng Zhao, CEO of Binance:
This afternoon, FTX asked for our help. There is a major cash shortage. To protect users, we have signed a non-binding offer, with the intention of fully acquiring FTX.com and helping to cover the cash shortage. We will conduct a full due diligence in the coming days. “
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
FTX founder Sam Bankman-Fried also commented on the issue on Twitter:
“The circle is complete and the first, and last, investors in FTX.com are the same: we have reached agreement on a strategic transaction with Binance for FTX.com (pending due diligence, etc.). “
It should be noted that a non-binding offer does not commit Binance to buy FTX. The platform is still entitled to reverse its decision.
Furthermore, the terms of the deal have not been disclosed at the time of writing.
This announcement is causing debate within the crypto-community. With FTX being one of Binance’s biggest competitors, if the platform and its users are absorbed, Binance’s control over the crypto-currency market will only be greater, which does not bode well in many ways.
FTT token crashes hard
Since the announcement, the price of the FTT token has begun a precipitous decline, losing more than 60% of its value in just 2 hours.
The price of FTT has fallen from $21 to nearly $9, an unprecedented drop for the FTX token:
FTT price trend since announcement
