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 seen a deep impact of the current turmoil due to the leaked balance sheet of the 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.
The end of the war after the acquisition of Binance FTX’s!
Following the recent news from Binance CEO Changpeng Zhao about selling FTX’s native token FTT Holdings, Sam Bankman-Fried reached out to Binance for help recovering from the current situation as the founders came up with several ways to save FTX from the death dance. are looking for.
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.”
Subsequently, Binance launched CZ . gave positive feedback as 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.
“To protect users, we have signed a non-binding LOI, which aims to help FTX fully acquire and cover liquidity crisis,” CZ said. We will conduct a full DD in the coming days. will do.”
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 there are media rumors of a conflict between our two exchanges, although Binance has repeatedly shown 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.”
Amidst the continuous dumping of FTT tokens by CZ, the acquisition of FTX by Binance comes as a huge surprise to the crypto industry. Following the acquisition, the FTT token is up nearly 40% in the past 30 minutes, a significant change after a deadly rally over the past 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.
