Key Takeaways
- Binance may abandon its deal to acquire FTX, according to reports.
- Yesterday’s news that Binance would acquire its most relevant competitor sent markets reeling.
- The idea of the deal falling through, however, does not bring much comfort to the market.
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Binance is having second thoughts about buying FTX.com.
Backout
The world’s largest crypto exchange, which announced just yesterday that it would acquire the world’s second-largest exchange, is reportedly having second thoughts on the matter.
According to a tweet from DB News, Binance appears to be reconsidering its decision to buy Sam Bankman-Fried’s embattled exchange after seeing the state of the company’s finances.
[DB] Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: CoinDesk Source
— db (@tier10k) November 9, 2022
News of the acquisition, which seemed to confirm rumors about financial woes at FTX and its closely-affiliated firm, Alameda Research, sent markets into a tailspin yesterday. FTX’s native token, FTT, lost close to 80% of its value yesterday, which sparked contagion throughout the markets—Bitcoin has sunk below its 2022 summer lows and is currently trading at $17,182. ETH, meanwhile, is trading at $1,172.
It was rumored around the same time this morning that U.S. regulators were investigating FTX’s handling of client funds.
This is a developing story.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, BNB, and several other crypto assets.
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Source: https://cryptobriefing.com/binance-considering-walking-away-from-ftx-deal-after-seeing-books/?utm_source=feed&utm_medium=rss