Binance CEO declares intent to amass FTX to ‘help cover the liquidity crunch’

Following Binance CEO Changpeng Zhao’s announcement that the corporate would liquidate its position in FTX Token (FTT), FTX CEO Sam Bankman-Fried, also referred to as ‘SBF,’ took to social media seemingly in an effort to quell rumors of battle between the foremost crypto exchanges.

According to a Nov. 8 Twitter thread from Bankman-Fried, FTX has “come to an agreement on a strategic transaction” with Binance following makes an attempt to filter its withdrawal backlog. SBF mentioned he had requested Binance to step in, aiming to “clear out liquidity crunches” and canopy property on a 1:1 foundation.

“I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators,” mentioned SBF. “We are in the best of hands.”

Zhao issued his personal assertion on Twitter, saying FTX approached Binance for assistance on Nov. 8 in response to a “significant liquidity crunch.” According to the Binance CEO, the transaction to which SBF referred was a non-binding letter of intent for the foremost alternate to amass FTX. Zhao added that Binance was “assessing the situation in real time” and had the flexibility “to pull out from the deal at any time.”

This afternoon, FTX requested for our assist. There is a major liquidity crunch. To shield customers, we signed a non-binding LOI, intending to completely purchase https://t.co/BGtFlCmLXB and assist cowl the liquidity crunch. We shall be conducting a full DD within the coming days.

— CZ Binance (@cz_binance) November 8, 2022

The announcement of the tentative deal between two main exchanges got here simply someday after SBF claimed on Twitter that FTX and its property had been “fine” and dismissed reviews of liquidity points as “false rumors.” The FTX CEO additionally called on CZ to have the exchanges work collectively “for the ecosystem,” however a number of the Binance CEO’s social media responses suggested he may not have been supportive of the deal — Zhao hinted Binance would “stay in the free market” versus having Alameda Research buy the alternate’s FTT holdings.

Related: FTX Token price risks 30% plunge as a 23M FTT ‘part’ moves to Binance

Should the deal between FTX and Binance transfer ahead, it will probably characterize a landmark acquisition within the crypto area, rivaling reviews Coinbase planned to purchase BtcTurk for $3.2 billion. FTX has typically been the one scooping up companies related to digital property, aiming to purchase Bitvo as a part of its transfer into Canadian market and reportedly raising $1 billion to discover further acquisitions.