Following a public spat between the world's two largest exchanges that contributed to several digital token taking a tumble Tuesday, a letter of intent has been signed to acquire FTX. The value of the deal was not disclosed by the firms.
Changpeng Zhao and Sam Bankman- Fried had a months-long clash on social media.
The decision was reached after FTX asked the firm for help. To protect users, we signed a non-binding LOI to purchase FTX. He said that they would be conducting a full DD in the near future.
The relationship between the two firms became strained as the younger firm grew in popularity.
The relationship between the two billionaires hit an all-time low this week after it was revealed that Binance was selling its holding of the native token of FTX exchange. The rumor about Alameda Research's financial health was given credence by the fact that the firm was liquidating its FTT holdings.
Bankman- Fried founded Alameda, a prop trading and market making firm that has some exposure to the FTT token. The FTT token fell to as low as 14.32 from 25.47 on Tuesday. Bernstein suggested in a note to clients that FTX should consider shutting down Alameda.
So just to be clear… Binance's CEO raises doubts over the financial health of Alameda/FTX, thus causing investor panic around FTX leading a ton of investors to move their funds out, only to then… buy the company outright??
— Ryan Browne (@Ryan_Browne_) November 8, 2022
The relationship with Alameda should be resolved. FTX can't keep its ownership structure with Alameda. The Alameda prop trading business needs to be shut down. There is more downside to running Alameda than otherwise because of the perception of Alameda trading against users on FTX and Alameda's state of finances.
Bankman-Fried thanked all of his supporters on Tuesday. The entire industry will benefit from this user-centered development. CZ has done an amazing job of creating a freer economic world.
Bankman- Fried said FTX is working to clear the withdrawal backlog. All assets will be covered1:1. This is one of the main reasons for us to have them here. He apologized for the fact that it might take a bit to settle.
The news caused several Cryptocurrencies to jump on it.
The value of the world's most valuablecryptocurrencies is estimated to be over $300 billion. In January this year, FTX was valued at $32 billion. There is a long list of backers for the firm. According to Web3 Signals, FTX and its FTX US business raised over $2 billion.
The business world and the coin community were shocked by Tuesday's announcement. After buying a number of firms, Bankman-Fried was hailed as a panacea for the digital currency. The ventures arm of the exchange, FTX, is a major investor in a number of companies in the space.
According to a source familiar with the matter, Bankman-Fried tried to raise more capital from investors before entering the market. Many investors are surprised by the move, according to a report.
Affected by the news of Binance's acquisition of FTX, BNB rose to $370, an increase of 12% in one hour; FTT rose to a maximum of $22, an increase of 37% in one hour. BTC bounces back to $20,143 and ETH to $1,535.
— Wu Blockchain (@WuBlockchain) November 8, 2022
All Rights Reserved © 2024
