- On Tuesday morning, FTX CEO Sam Bankman-Fried Tweeted that his crypto exchange had reached a deal with Binance to protect customers amid a liquidity scare.
- The sentiment was echoed by Binance CEO Changpeng Zhao, who Tweeted that the company had signed a non-binding Letter of Intent to fully acquire FTX.com in the near future.
- Zhao also noted that the situation is “highly dynamic” and that Binance has the discretion to pull out from the deal at any time.
Why it matters
On the morning of Tuesday, November 8, FTX CEO Sam Bankman-Fried and Binance CEO Changpeng Zhao confirmed that Binance is seeking to acquire FTX. Taking to Twitter, both executives noted that the move stems from an FTX liquidity crunch, which has resulted in a lack of cash or easily convertible to cash assets on hand for FTX to disseminate to its customers.
While this merger of crypto exchange giants might come as a surprise to some, considering Bankman-Fried and Zhao’s complicated past, it will likely create major ripples throughout the blockchain ecosystem as the recent market downturn continues to affect every level of the $1 trillion crypto industry. This news also comes only a few days after Zhao announced Binance’s plan to liquidate its remaining FTT token holdings, a move that, according to Zhao as noted in a Financial Times article, was orchestrated prior to any communications between Binance and FTX and is apparently now on hold.
Source NFT Now