Changpeng Zhao, CEO of the world’s largest crypto exchange Binance, announced that they will buy FTX, one of their biggest competitors.
The world’s largest cryptocurrency exchange Binance There have been rumors over the past few days that there has been a conflict between FTX and FTX, the third largest exchange by trading volume. In addition, there was a serious decrease in FTX’s token FTT. It was reported that the reason for this was Binance selling a large amount of FTT.
Now, there has been a development that shakes the crypto money world, and it turns out that Binance is planning to buy FTX. Binance’s CEO, also known as CZ Changpeng Zhaoannounced these intentions in a post on his Twitter account.
Binance wants to buy FTX to protect users and fix liquidity problem
In a statement on Twitter, Zhao stated that FTX asked Binance for help today and stated that they are planning to buy the giant exchange: “FTX asked for our help this afternoon. There is a serious liquidity problem. To protect users Aiming to fully acquire FTX and fix the liquidity problem We signed a non-binding letter of intent.”
In addition, a statement came from Sam Bankman-Fried, the owner of FTX. The famous CEO described this situation as ‘strategic’ and stated that they reached an agreement with Binance. Drawing attention to the importance of protecting customers, Bankman-Fried; CZ thanked Binance and all their supporters and encouraged the development. ‘a user-centered development that benefits the entire industrydefined as ‘.
What had happened?
We have mentioned that there has been a dispute between Binance FTX in recent days. Let’s dive into the details of this situation that occupies the crypto money world. Binance CEO Changpeng Zhao recently announced that the FTX tokens (FTT) held by the exchange will sell announced. The giant exchange’s statement that it will liquidate all positions in FTX’s native token also caused a giant drop in FTT and shaken the market. The popular cryptocurrency, which is around $ 25, is currently 6 dollars traded around.
This decision about Binance’s FTT was taken due to recent information. These are the founders of FTX CEO Sam Bankman-Fried. Alameda Research’s billions of dollars worth of assets connected to FTT were the allegations. This situation, which emerged in the documents examined, showed that Alameda has a strong foundation based on FTX. Alameda CEO, on the other hand, stated that the resulting balance sheet is a subset of the company’s assets, with $ 10 billion in assets not reflected there. Bankman-Fried also stated that unfounded rumors were circulating.
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Announcing that he held the equivalent of $2.1 billion in BUSD and FTT last year, Binance CEO also said, “After these allegations,We will not support lobbyists from other industry players’ and announced that they will sell FTT. Zhao also described the transfer of $584 million worth of FTT from an unknown wallet to Binance as part of their move. Also, a report shared by The Block today states that the FTX exchange Stopping cryptocurrency withdrawals reported.
The acquisition announcement today also came after Bankman-Fried announced that FTX and assets were good and described liquidity problems as ‘false rumors’. FTX’s CEO, in his statements today after the emergence of the acquisition, said that he knew that there were allegations of conflict between the two exchanges, saying that they were in the “best hands” and tried to suppress the rumors of tension between the companies.
We will see in the coming days whether the agreement between Binance and FTX, which may be a turning point in the crypto money world, will progress.