{"id":166657,"date":"2022-11-08T21:38:01","date_gmt":"2022-11-08T21:38:01","guid":{"rendered":"https:\/\/precoinnews.com\/?p=166657"},"modified":"2022-11-08T21:38:01","modified_gmt":"2022-11-08T21:38:01","slug":"ftx-capitulates-and-agrees-to-sell-to-binance-following-the-liquidity-crunch-that-rocked-the-exchange","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/ftx-capitulates-and-agrees-to-sell-to-binance-following-the-liquidity-crunch-that-rocked-the-exchange\/","title":{"rendered":"FTX Capitulates and Agrees to Sell to Binance Following the Liquidity Crunch that Rocked the Exchange"},"content":{"rendered":"<ul>\n<li>Binance has agreed to purchase FTX after days of uncertainty over the financial status of the company.<\/li>\n<li>The deal is a non-binding one that allows Binance to withdraw from the negotiations at any time.<\/li>\n<li>FTX has had to endure $6 billion in net withdrawals in the last three days while its FTT token tumbled.<\/li>\n<\/ul>\n<p>The brewing tension between Binance and FTX might just end up in a marriage, as both firms are in talks for a potential acquisition.<\/p>\n<p>Binance CEO, Changpeng Zhao has announced that his firm is in talks with FTX over a potential acquisition of the firm. The decision to purchase FTX is coming on the heels of a report that poked holes into the balance sheet of FTX and Alameda Research, fueling liquidity problems for the digital exchange.<\/p>\n<p><em>\u201cThis afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch,\u201d<\/em> tweeted Zhao.<\/p>\n<p>Sam Bankman-Fried, CEO of FTX, confirmed developments noting that <em>\u201cthings have come full circle\u201d<\/em> and that his firm has <em>\u201ccome to an agreement on a strategic transaction with Binance.\u201d<\/em><\/p>\n<p>The exact figures involved in the transaction were not made public, but analysts expect a full disclosure in the coming days. The non-binding deal gives Binance the right to walk away from the deal if terms cannot be reached between both parties, with Binance said to be carrying out its due diligence.<\/p>\n<p>A few months ago, FTX was valued at an impressive $32 billion and had a streak of bailing out troubled companies by extending credit lines. Things turned around for the worse amid fears that FTX was on the brink of insolvency with a Reuters report noting that FTX may have recorded net withdrawals of $6 billion.<\/p>\n<p><em>\u201cWhat could have been just an isolated issue at Alameda became a bank run,\u201d<\/em> said Jeff Dorman, Chief Investment Officer at Arca. <em>\u201cEverybody started to pull their assets out of FTX and there\u2019s this fear that FTX would be insolvent.\u201d<\/em><\/p>\n<h2><strong>It\u2019s for the good of the industry<\/strong><\/h2>\n<p>At the start of the week, the industry was rife with speculation that there was a rift between Zhao and Bankman-Fried, especially with the announcement of Binance selling off its FTT tokens and other cryptic tweets.<\/p>\n<p>However, Bankman-Fried has disclosed that there is no beef between the two founders and that they are committed to building a healthy ecosystem.<\/p>\n<p><em>\u201cI know that there have been rumors in the 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,\u201d <\/em>said Bankman-Fried. <em>\u201cWe are in the best of hands.\u201d<\/em><\/p>\n<p>It is important to note that the deal will not affect FTX.US and Binance.US as they are different entities operating independently.<\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/ftx-capitulates-and-agrees-to-sell-to-binance-following-the-liquidity-crunch-that-rocked-the-exchange\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Binance has agreed to purchase FTX after<\/p>\n","protected":false},"author":3,"featured_media":166656,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - 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