In a recent development, Binance CEO Changpeng Zhao has signed a non-binding Letter of intent to fully acquire the struggling FTX exchange. announced. Zhao said that FTX was having a liquidity problem and “asked for help” from Binance:
“This afternoon FTX asked for our help. There is a serious liquidity crunch. We signed an agreement to protect users. There is a lot that needs to be addressed and it will take some time. This is an extremely dynamic situation and we are evaluating the situation instantly. Binance has the right to withdraw from the deal at any time. We expect FTT to be quite volatile in the coming days as events unfold. Binance will buy FTX.”
Mentioned Withdrawals
Sam Bankman-Fried, founder of FTX, also touched on the pending withdrawals at FTX, saying that both Binance and the Bahama-based digital asset platform will work together to fix things as quickly as possible.
“Our teams are working to clear the withdrawal backlog. This will eliminate liquidity problems. A big thank you to CZ, Binance and all our supporters. This is a user-centered development that benefits the entire industry. CZ has done and will continue to do an incredible job in building the global crypto ecosystem and creating a freer economic world. I know there are rumors of conflict in the media, but Binance has repeatedly shown that they are committed to a more decentralized global economy while working with regulators to improve industry relations. We are in safe hands.”
As Sam Bankman-Fried points out, Binance has made many constructive developments for the industry many times before. For example, he took action for the recently collapsed Terra ecosystem and supported the LUNC burning.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.