Binance, the biggest cryptocurrency exchange in the world, will buy rival FTX business FTX.com.
- According to Binance founder Changpeng Zhao, the business has signed a non-binding agreement to acquire the FTX.com. However, Binance is free to back out of the agreement at any time.
- Sam Bankman-Fried posted a thread on his Twitter account claiming that Binance has agreed a deal to buy FTX.com, the exchange that he had built into a global crypto giant.
- FTX’s native token FTT had plunged as much as 32% today. After the news broke, FTT started soaring and has recovered from a low of $14.57 to over $19 at the time of writing — a 36% recovery.
- Changpeng Zhao also tweeted about the deal, noting that: “This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
- The news impacted the overall market positively. Bitcoin and ether are both making quick recoveries, since a sharp decline on Saturday night when Zhao announced Binance would shortly dump hundreds of millions of dollars in FTX’s native token FTT in reaction to allegations of Alameda Research’s insolvency.
Read Also: Crypto Exchange FTX Secures $420M, Now Valued At $25 Billion