Following the liquidity crisis shaking FTX, one of the leading cryptocurrency exchanges, Binance, has announced its intention to acquire it.
Binance CEO Changpeng Zhao (CZ) clarified that his company will carry due diligence on the acquisition process in the coming days but will commence rescue operation due to the urgency of the situation.
CZ emphasized that there are a lot of things to address. He thus asserted that Binance will not hesitate to pull out of the deal should it discover any unsatisfactory circumstances.
Speaking on the development, FTX CEO Sam Bankman-Fried (SBF) described the urgent deal as a “user-centric development that benefits the entire industry.”
Although there has been a power dispute between both Binance and FTX exchanges, SBF revealed that there is no conflict, and added that FTX had reached an agreement with Binance on strategic transactions.
It would be recalled that Binance recently disclosed its intent to over 23 million FTT tokens worth approximately $584 million citing post-exist risk management.
Previously, several claims have been made that FTX may become insolvent, but the allegation has been repeatedly denied by SBF, emphasizing that the exchange has sufficient liquidity.
Unfortunately, the above claims have been confirmed, as FTX can no longer meet the required volume of liquidity.
Meanwhile, FTX liquidity crisis has negatively impacted its native token FTT, which has been down by 75.3% within the last 24 hours. FTT token has undergone massive selling pressure and is trading at $4.46 at the time of writing according to data from CoinMarketCap.
Acquisition Plan
Amidst the ongoing crypto crash pulling down Bitcoin to a new yearly low of $17,082 and other altcoins, there seems to be an increase in the buying and selling.
While Binance acquisition of FTX exchange is in progress, rival exchange Coinbase has also disclosed plans to acquire BtcTurk for $3.2 billion.
Meanwhile, FTX has earlier made efforts to acquire digital platform Bitvo in its bid to explore the Canadian market but it appears the exchange must have jettisoned the plan amidst internal turmoil.
