Binance Is Acquiring FTX

UTC by Ibukun Ogundare · 3 min read
Binance Is Acquiring FTX
Photo: Shutterstock

Following the news that Binance was acquiring FTX, the FTT token began to rebound.

Binance has agreed to buy rival crypto exchange FTX following the collapse of the latter’s native exchange token FTT. The deal was confirmed by the CEO of the two parties, Changpeng Zhao (CZ) of Binance and Sam Bankman-Fried of FTX. In a tweet, CZ stated that FTX asked for help. The crypto enthusiast added that the firm signed a “non-binding LoI” in order to protect users, fully takeover FTX, and assist with a “significant liquidity crunch.”

Binance to Acquire FTX

For now, there are no financial details of the transaction between Binance and FTX. Also, the acquisition does not involve the US arms of both businesses- Binance US and FTX US. The Binance chief wrote that there are still many processes to cover concerning the agreement with Binance. He added:

“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.”

Following the news that Binance was acquiring FTX, the FTT token began to rebound. The native coin jumped as much as 25%, up from a low of around $14. FTX started to see FTT fall amid rumors that the crypto exchange had halted withdrawals. On the other hand, BNB also gained 10% to $368.07 in reaction to the news of the deal. A successful acquisition means that two of the world’s largest crypto exchanges would become one. That is set to be a huge development, considering that both crypto firms represent $34 billion in trading volume as of Tuesday morning. And according to CoinGecko, the figure represents one-quarter of combined trades on centralized exchanges.

Both CEOs Confirm Pending Deal

Before the completion of the deal, both the CEOs of Binance and FTX noted that their teams would conduct due diligence. Bankman-Fried wrote about the agreement in a Twitter thread, referring to it as a “strategic transaction.” SBF also said:

“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. It may take a bit to settle etc. – we apologize for that.”

In conclusion, the FTX head appreciated Zhao and all their supporters. He mentioned that the entire industry will benefit from the latest development. He acknowledged 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.”

Blockchain News, Business News, Cryptocurrency news, Deals News, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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