Binance is buying FTX exchange
Changpeng Zhao tweeted that he was buying the FTX platform. He said that FTX turned to Binance for help because of a serious liquidity crisis. To maintain FTX liquidity, Binance decided to purchase the U.S. platform.
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 https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.— CZ Binance (@cz_binance) November 8, 2022
The head of Binance also wrote that in the coming days will be conducted due diligence. Zhao noted that the situation is dynamic and at any time things can change. Publication from project cryptodefix.com. Binance has the option to back out of the deal.
Following the announcement of the FTX purchase, its native token FTT plummeted by 72% overnight. It is now trading around $4.87. The initial problem with the loss of liquidity is due to Binance's announcement that they will sell their remaining FTTs within a few months. After that announcement, about $1.2 billion was withdrawn from FTX.