Binance to Acquire FTX Global Amid Broader Market FUD
Godfrey Benjamin Nov 08, 2022 16:00
Binance CEO has unveiled it might be acquiring FTX Global to help stabilize the embattled firm
Binance CEO, Changpeng Zhao has just made a revelation that it is looking at acquiring FTX Global, based on a prompting from the exchange for liquidity bailout.
FTX Derivatives Exchange is making the headlines today for the wrong reasons, and one such is that the platform has halted trading activities for users. Drawing on its own analytics, The Block first reported the transaction halt, pointing out that the last time the trading platform stopped processing withdrawals, the last transaction was at 06:37 ET (11:37 GMT) on the Ethereum blockchain.
Raging FUD on FTX Ecosystem
The entire Fear, Uncertainty, and Doubts had been detailed by Blockchain.News in previous reports but essential entails the hyperinflation of the exchange’s native token FTT, as shown in the leaked Alameda Research balance sheet.
It was also alleged that FTX is reputable for lobbying against other industry participants, a move Binance CEO Changpeng Zhao pointed out in a recent tweet promising to sell over $600 million worth of FTT tokens in his exchange’s vault.
The situation degenerated, and FTX users started withdrawing their funds from the trading platform with a corresponding dump off of FTT, which has slumped by 19.04% to $18.50 over the past 24 hours.
As predicted by a number of analysts, the withdrawal halt might have been fueled as a result of the bank run placed on the exchange platform.
Moving Forward: The Binance-FTX Settlement
While its details remain unknown, FTX CEO Sam Bankman-Fried has come out to announce that his platform and Binance have inked a strategic agreement with Binance.
After having revealed that a competitor is likely spreading false rumours about its operations, Bankman-Fried acknowledged the role of Binance in the ecosystem. In a later tweet, CZ confirmed that Binance will be buying FTX Global and will be making due diligence on the deal in due course.
CZ noted that nothing is final yet, and Binance can still decide to pull out of the deal at any time. The industry was riled by these latest updates, with the combined crypto market cap dropping 2.33% to $1.01 trillion.
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