In a recent development, Binance CEO, Changpeng Zhao or popularly referred to as CZ announced on Twitter that they have signed a non-binding Letter of Intent (LOI), intending to fully acquire the FTX cryptocurrency exchange.
According to CZ, officials from FTX reached out to Binance as there was a significant liquidity crunch. In order to help cover this, Binance would be acquiring the whole of FTX.
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
In a series of tweets, he further stated,
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.
The biggest exchange in the world, Binance, was the first to support FTX, but as the latter company gained more prominence, their partnership began to fall apart.
The two executives have been criticizing one another for a while, but this week Zhao revealed that Binance would be selling its FTT holding, the native token of FTX exchange, that had been received as part of an exit from the company last year.
In a tweet, Sam Bankman-Fried said:
“A *huge* thank you to CZ, Binance, and all of our supporters. This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/breaking-binance-ceo-cz-announces-ftx-acquisition-to-save-liquidity-crunch/