BINANCE has just closed the purchase of FTX and with a dramatic turn in history the world’s most popular Exchange is placed under the spotlight of the crypto sector, after a wave of rumors claimed, since a few days ago, that FTX had liquidity problems and was on the verge of bankruptcy.
Without giving a single detail about the value of the deal, both parties have confirmed the transaction. And Binance founder Changpeng Zhao weighed in on Twitter:
“This afternoon, FTX has requested our assistance. They have a major liquidity crisis. To protect users, we have signed a non-binding letter of intent, with the intention to fully acquire FTX and help cover the liquidity crisis. We will conduct due diligence in the coming days.”
However, Binance’s CEO also stressed that as this is a “very dynamic situation” he and his team of advisors study the situation in real time and, if necessary, could withdraw. While Sam Bankman-fried, CEO of FTX, assured that “the most important thing is that customers are protected.”
Binance was once an investor in FTX, but in 2021 withdrew its resources from the company and received a sum equivalent to $2.1 billion in BUSD, Binance’s own stablecoin, as well as FTT, FTX’s native token.
Following that transaction, Changpeng Zhao stated:
“Liquidating our FTT is just post-exit risk management, learning from Luna. We gave support before, but we don’t want to make love after divorce. We are not against anyone. But we will not support people who lobby against other industry players behind their backs.”
With the first wave of rumors surrounding FTX’s lack of liquidity, users began to withdraw their funds from the platform and Sam Bankman-Fried, had no choice but to enlist the help of Binance, its number one rival.
Following the announcement that Binance had acquired FTX, the FTT token recovered its price, having registered drops of up to almost 35% and trading with a price just above $14.