Summary:
Sam Bankman-Fried’s FTX and Changpeng Zhao’s exchanges have reached a resolution per tweets from SBF himself.
SBF said the two entities agreed on a strategic transaction.
Binance will fully acquire FTX, per CZ’s tweets.
FTX and Alameda Research CEO Sam Bankman-Fried tweeted that his exchange and Changpeng Zhao’s Binance have agreed on terms regarding how Zhao’s exchange will offload around $2.1 billion in FTT tokens without possibly tanking already battered crypto prices.
SBF addressed pending withdrawals on FTX, saying both CZ’s Binance and the Bahama-based digital asset platform will work together to set things right as quickly as possible.
2) Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. — we apologize for that.
— SBF (@SBF_FTX) November 8, 2022
CZ also released an announcement with further details on the matter. Zhao said Binance has signed “a non-binding LOI to fully acquire FTX.com” in a thread on Tuesday. The Binance chief echoed SBF’s liquidity remarks and stressed that both exchanges will resolve the “liquidity crunch” on FTX.
At press time, details and terms of the agreement between Binance and FTX remain unavailable. Zhao’s tweet hinted that more developments might be shared soon. CZ stressed that Binance could pull out of the deal and that users should expect massive FTT volatility.
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
BNB Up 12%, CZ Consolidates Crypto Exchange Dominance With FTX Acquisition
Binance Coin (BNB) pumped as high as 13% at press time following SBF’s and CZ’s announcements. BNB’s price jumped to $382 and trading volume exploded in the past 24 hours, per data pulled from TradingView and CoinMarketCap.
CZ’s FTX buyout has arguably dominated crypto Twitter since the news was shared by both Billionaires. Binance has supposedly taken out a major competitor and the takeover could significantly increase market share for Zhao’s exchange.
Interestingly, Three Arrows Capital co-founder Su Zhu tweeted amid the staggering turn of events. Zhu, whose whereabouts are unconfirmed while his crypto hedge fund faces liquidation, replied to a podcast invite from Cobie on Twitter. Terraform Labs CEO Do Kwon also tweeted a “bend the knee” meme from Game of Thrones.
BNB/USDT by TradingView
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