It turned out that FTX, the world’s second largest cryptocurrency exchange, facing liquidity problems, requested a $ 1 billion bailout on Wall Street and Silicon Valley a few hours before meeting with Binance.
According to Semafor’s November 8 report, before FTX knocked on Binance’s door to solve the liquidity problems it faced after Binance announced that it would sell $500 million in FTT. Wall Street and Silicon Valley from billionaires 1 billion more than a dollar recovery pack wanted.
According to the information conveyed, it was revealed that FTX, which could not find the investment it was looking for, had to knock on the door of its biggest rival, Binance, as a last resort.
The stock market’s CEO announced on November 8 that an agreement was reached to sell all of the company’s organizations, except its US subsidiary, to rival cryptocurrency exchange Binance, causing panic in the markets.
With the news announced on 8 November, the company bank-run (panic selling wave) forced to sell assets supporting FTT to meet a similar wave of sales. However, as can be seen in a typical liquidity crisis, the assets of FTX fast enough It was caught in the middle of a liquidity crisis after it could not sell it. Sources At midday on November 8, the company’s financial shortfall was approx. 5 to 6 billion dollars He claimed to be around.
RobinHood, an online brokerage firm, faced a similar liquidity crisis last year and one of its current investors emergency fund had to demand it.