Binance agrees to acquire FTX following liquidity crunch PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Binance agrees to acquire FTX following liquidity crunch

Binance, the world’s largest cryptocurrency exchange, has agreed to acquire rival exchange FTX, Sam Bankman-Fried, founder and chief executive of FTX announced on Tuesday. 

See related article: CZ vs. SBF tweet exchange is no ‘fight,’ Binance CEO claims

Fast facts

  • Binance CEO Changpeng Zhao also confirmed the news on Tuesday and vowed to support FTX’s liquidity crunch.
  • Both Zhao and Bankman-Fried said that working out the details of the deal will take time, but the Binance founder added that his exchange can “pull out from the deal at any time.”
  • The development follows reports of liquidity and withdrawal issues at FTX, as Binance liquidated its remaining FTX tokens (FTT) on Sunday. 
  • A CoinDesk report that reviewed a financial report from Alameda Research, a sister company of FTX, found that the company’s debt accounted for 54% of its assets as of June 30, with a majority holding of FTT, suggesting solvency issues. 
  • FTT lost 39% of its value within an hour to trade at US$9.84 at 02:10 am in Hong Kong according to CoinGecko data.
  • BNB fell 9% to trade at US$338.15 after spiking to US$393.93 shortly after the announcement. 

See related article: Binance to sell FTX token holdings amid questions over trading arm Alameda finances

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