Binance Head Chanpen Zhao announced the purchase of FTX
Sam Bankman-Fried and Chanpen Zhao announced strategic partnership. It is designed to resolve the liquidity crisis and involves the possible absorption of the FTX exchange of Binance.
This afternoon, FTX ASKED for OUR HELP. There is a Significant Liquidity Crunch. To Protect Users, We Signed a Non-Binding Loi, Intending to Fullly Acquire https: // T.Co/bgtflcmlxb and Help Cover The Liquidity Crunch. We Will Be Conduction a Full DD in the Coming Days.
– Cz 🔶 Binance (@cz_binance) november 8, 2022
“This afternoon FTX turned to us for help. There is a significant liquidity crisis. To protect users, we signed a letter about intentions involving the full acquisition of FTX.Com. In the coming days we will spend the full Due Diligence, ”Zhao wrote.
He called the current situation around the “very dynamic” exchange, the assessment of which “takes place in real time”.
“Binance has the right to refuse the transaction at any time. We expect FTT in the coming days will be very volatile, ”Zhao added.
The head of the FTX Sam Bankman Fried confirmed the information about the strategic agreement designed to solve a number of problems.
“Our teams are working to eliminate accumulated queries of withdrawal of funds. This will eliminate the liquidity crisis; All assets will be provided with a ratio of 1: 1. This is one of the main reasons why we turned to Binance. It may take some time. We apologize for this, ”wrote Bankman-Fried.
He added that he knows about rumors about the conflict between the exchanges.
“I know that there were rumors about the conflict between our two exchanges in the media. However, Binance has repeatedly proved its commitment to a more decentralized global economy, working on improving relations with regulators. We are in good hands, ”said the head of FTX.
In conclusion of the thread, Bankman-Fried emphasized that FTX US and BINANCE.US – individual companies that do not affect the aforementioned agreement.
The market reacted to the news with a sharp revival. Bitcoin went up about $ 1000 within an hour, returning to the marks above $ 20,000.
Bitcoin price fell below $ 19,000.
On the eve of the publication of the tweets of Zhao and Bankman-Frida, memes appeared on the Web, ironically describing the current situation.
Previously, the ftt-token ftT fell by about 30%-with levels above $ 22 to marks below $ 16.
The collapse occurred against the background of rumors about the confrontation of two exchanges and fears regarding the financial stability of FTX. At the same time, the price of bitcoin failed the level of $ 20,000, pulling the entire market.
On November 6, CEO Binance Chanpen Zhao announced the company’s desire to get rid of ftt. Assets together with Busd in a total of ~ $ 2.1 billion steel by the company output from portfolio investment in FTX.
He emphasized that the decision is not directed against the competitor What is PooCoin , since Binance is important to maintain the stability of the developing industry.
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