CRYPTO NEWS: BINANCE TERMINATES ITS ACQUISITION OF FTX.

CRYPTO NEWS: BINANCE TERMINATES ITS ACQUISITION OF FTX.

BINANCE TERMINATES ITS ACQUISITION OF FTX, DEALING A SHOCK TO THE CRYPTOCURRENCY MARKET. JUST DAYS AFTER REVEALING ITS PLANS TO ACQUIRE THE STRUGGLING STARTUP, BINANCE WITHDREW FROM ITS PROPOSED DEAL TO BUY RIVAL FTX ON WEDNESDAY.

BINANCE TERMINATES ITS ACQUISITION OF FTX:

THE BIGGEST CRYPTOCURRENCY EXCHANGE IN THE WORLD, BINANCE, DECIDED AGAINST BUYING FTX AFTER LEARNING ABOUT “MISMANAGED CUSTOMER CASH AND PURPORTED US AGENCY PROBES,” ACCORDING TO CNBC. THE WALL STREET JOURNAL REPORTS THAT FTX HAS ALERTED INVESTORS OF A POSSIBLE BANKRUPTCY DUE TO AN ANTICIPATED $8 BILLION SHORTFALL.

CRYPTO NEWS: BINANCE TERMINATES ITS ACQUISITION OF FTX.
BINANCE TERMINATES ITS ACQUISITION OF FTX

CHANGPENG ZHAO, THE CEO OF BINANCE, ANNOUNCED THAT HIS COMPANY WOULD BUY FTX OVER THE WEEKEND WITH THE GOAL OF SELLING OFF ITS HOLDINGS IN FTX. SAM BANKMAN-FRIED, THE INVENTOR OF FTX, WOULD NOT HAVE BEEN ABLE TO RAISE $580 MILLION IN CASH IF THIS HAD OCCURRED.

ALTHOUGH BINANCE AND FTX ARE RIVALS, ZHAO INFORMED STAFF THAT THE DEMISE OF FTX IS BAD FOR EVERYONE IN THE SECTOR. ZHAO WEDNESDAY WROTE IN AN INTERNAL MAIL THAT WAS LATER MADE PUBLIC: “THIS AND EVERYTHING ELSE RELATED TO IT WERE NOT PLANNED IN ADVANCE. I RECEIVED A CALL FROM SBF (BANKMAN-FRIED) LESS THAN TWENTY-FOUR HOURS AGO. AND PRIOR TO IT, I KNEW VERY LITTLE ABOUT THE INTERNAL SITUATION AT FTX.”

ZHAO ALSO URGED STAFF MEMBERS NOT TO PURCHASE OR SELL FTX’S PREFERRED CURRENCY, FTT.

AS OF TUESDAY, BINANCE AND FTX HAVE A NON-BINDING AGREEMENT IN PLACE FOR AN UNSPECIFIED SUM. EARLY IN THE YEAR, FTX WAS WORTH ROUGHLY $32 BILLION, BUT THAT VALUE HAS SINCE SIGNIFICANTLY DECREASED.

ACCORDING TO A TWEET FROM BINANCE, “AT FIRST, OUR OBJECTIVE WAS TO BE ABLE TO SERVE FTX’S CUSTOMERS TO PROVIDE LIQUIDITY.” BUT WE ARE UNABLE TO INTERVENE OR CONTROL THE PROBLEMS.

OVER THE PREVIOUS SEVERAL DAYS, FTT’S VALUE HAS DRASTICALLY DECREASED, PLUNGING BY 80% BETWEEN MONDAY AND TUESDAY. A LOSS OF NEARLY $2 BILLION IN A SINGLE DAY WOULD BE THAT. TUESDAY SAW FTT’S VALUE DROP TO $5, THEN ON WEDNESDAY IT ROSE TO $2.30.

ACCORDING TO CNBC, BANKMAN-FRIED INFORMED INVESTORS THAT FTT TRADERS WERE ASKING WITHDRAWALS OF UP TO $6 BILLION. ON THE HOME PAGE OF THE FTX WEBSITE, A NOTIFICATION INFORMS VISITORS THAT WITHDRAWALS CANNOT BE PROCESSED AND DISCOURAGES THEM FROM MAKING DEPOSITS.

NOT ALL CRYPTOCURRENCIES ARE AFFECTED BY A DECLINING MARKET, INCLUDING FTT. SINCE IT WAS REVEALED THAT BINANCE WAS TERMINATING ITS AGREEMENT WITH FTX, THE VALUE OF BITCOIN AND ETHEREUM HAS ALSO DECREASED. ACCORDING TO CNN, THE PRICE OF BITCOIN IS AT ITS LOWEST POINT IN THE PAST TWO YEARS.

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CRYPTO NEWS: BINANCE TERMINATES ITS ACQUISITION OF FTX.

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