Binance to Acquire FTX Exchange – Bitcoin Magazine
FTX Exchange is set to be acquired by Binance pending due diligence following the liquidity crisis from FTX. publication From the CEO of FTX.
“Our team is working to close the outstanding withdrawals as they are,” said CEO Sam Bankman-Fried of the suspension of FTX asset withdrawals. “This eliminates the liquidity crisis. All assets are covered 1:1 by him. This is one of the main reasons he asked Binance to join us.”
Bankman-Fried said in a statement that Binance.US and FTX.US are “currently unaffected by this” and that withdrawals are currently active and working normally.
Binance CEO Changpeng Zhao (CZ) also commented Please note that for future acquisitions, Binance may reverse the deal at any time if due diligence leads to such a decision.
“There’s a lot to cover and it takes time,” he said. CZ“This is a very dynamic situation and we are assessing the situation in real time.”
Additionally, the news of the acquisition may seem shocking as FTX sought to play a pivotal role in restoring the Bitcoin and cryptocurrency ecosystem following the events that preceded and followed the Terra collapse. .
Amid the market turmoil, FTX embarked on acquisitions of quite a few companies in its ecosystem, including Voyager, BlockFi and Celsius. Babel Finance also fell into the whims of the market along with Three Arrows Capital.
But now FTX is in trouble and needs help. Cory Clippsten, CEO of Swan Bitcoin, reached out to Bitcoin Magazine to comment on the evolving situation.
“A centralized business that re-hypothesizes is, by definition, a game of trust,” says Clippsten. “With zero fair value for all altcoins other than Bitcoin on the balance sheet, all cryptocurrency traders believe that shorting all positions to oblivion can be a great deal. needs a little momentum.”
Crippsten said that centralized companies with “mountains of altcoins on their balance sheets” are inherently playing this risky game, making participating companies “intrinsically vulnerable and It is prone to collapses like Lehman.”
Binance to Acquire FTX Exchange – Bitcoin Magazine
Source link Binance to Acquire FTX Exchange – Bitcoin Magazine
