Following Binance CEO Changpeng Zhao’s announcement that the corporate would liquidate its place in FTX Token (FTT), FTX CEO Sam Bankman-Fried, also referred to as ‘SBF,’ took to social media seemingly in an effort to quell rumors of battle between the foremost crypto exchanges.
In accordance with a Nov. 8 Twitter thread from Bankman-Fried, FTX has “come to an settlement on a strategic transaction” with Binance following makes an attempt to filter its withdrawal backlog. SBF stated he had requested Binance to step in, aiming to “filter liquidity crunches” and canopy belongings on a 1:1 foundation.
“I do know that there have been rumors in media of battle between our two exchanges, nonetheless Binance has proven again and again that they’re dedicated to a extra decentralized world financial system whereas working to enhance business relations with regulators,” stated SBF. “We’re in one of the best of arms.”
Zhao issued his personal assertion on Twitter, saying FTX approached Binance for assistance on Nov. 8 in response to a “important liquidity crunch.” In accordance with the Binance CEO, the transaction to which SBF referred was a non-binding letter of intent for the foremost change to amass FTX. Zhao added that Binance was “assessing the state of affairs in actual time” and had the power “to drag out from the deal at any time.”
This afternoon, FTX requested for our assist. There’s a important liquidity crunch. To guard customers, we signed a non-binding LOI, intending to completely purchase https://t.co/BGtFlCmLXB and assist cowl the liquidity crunch. We will probably be conducting a full DD within the coming days.
— CZ Binance (@cz_binance) November 8, 2022
The announcement of the tentative deal between two main exchanges got here simply at some point after SBF claimed on Twitter that FTX and its belongings had been “high-quality” and dismissed reviews of liquidity points as “false rumors.” The FTX CEO additionally referred to as on CZ to have the exchanges work collectively “for the ecosystem,” however a number of the Binance CEO’s social media responses steered he could not have been supportive of the deal — Zhao hinted Binance would “keep within the free market” versus having Alameda Analysis buy the change’s FTT holdings.
Associated: FTX Token worth dangers 30% plunge as a 23M FTT ‘half’ strikes to Binance
Ought to the deal between FTX and Binance transfer ahead, it might probably characterize a landmark acquisition within the crypto house, rivaling reviews Coinbase deliberate to buy BtcTurk for $3.2 billion. FTX has usually been the one scooping up companies related to digital belongings, aiming to buy Bitvo as a part of its transfer into Canadian market and reportedly elevating $1 billion to discover extra acquisitions.
