Binance is acquiring FTX after a liquidity crunch.

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Binance is acquiring FTX after a liquidity crunch.
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Binance said Tuesday that it has signed a letter of intent to acquire its most formidable rival, FTX.The outcome of a seven-day public spat between the world’s two largest crypto exchanges contributed to several digital tokens taking a tumble Tuesday.

FTX founder Sam Bankman and Binance founder Changpeng Zhao have announced joint ventures.-Fried’s months-long clash on social media, which escalated earlier this week, led to an immediate dismissal.

Zhao said Binance reached the decision after the three-year-old exchange FTX asked for help from the crypto behemoth. In order to protect users, we signed a nonbinding LDO which aims to fully acquire FTX and help cover the liquidity crunch. We will have a complete DD from you in the coming days,” he added.

“Banking has the discretion to pull out from the deal at any time,” said Zhao, who is more commonly known as CZ. The bank’s president said the customers should be protected.

Binance was the first investor who supported FTX. The companies haven’t disclosed the financial terms of the deal, but it’s likely not great / utterly terrible for investors of FTX, which was valued at $32 billion in a financing round earlier this year.

The deal may not be fully disclosed until regulatory scrutiny is brought in.

Mr. Powell and Mr. Morgan have been feuding for several months, throwing snarky comments at each other. After Zhao announced on Tuesday that Binance was selling its holdings of the FTT, shares of the New York-based company hit an all-time low earlier this week. The exchange had received the native token as part of its exit from the firm last year.

In order to improve risk management, Zhou said the firm was liquidating its FTT holdings. Alameda Research’s financial health has had a lot of public attention. Alameda and Bankman-Fried had previously denied such concerns.

He founded a firm called Alameda, which is now selling FTT tokens. The FTT token lost weight on the move, reaching as low as $14.32 from $25.47 earlier on Tuesday. After news broke, the token went down to as low as $2.51, before a slight recovery.

Research firm Bernstein said in a note to clients that FTX should consider shutting down Alameda due to the perceived risks.

FTX should resolve its relationship with Alameda because finance is the immediate trigger. FTX cannot consolidate its ownership with Alameda. This will likely impact the Alameda prop trading business. It depends on how FTX is perceived by the customers. “There is more downside to running Alameda than otherwise,” said a Bernstein analyst quoted as saying.

Bankman-Fried said Huge thanks” to Zhao and Binance on Tuesday, adding that the deal was 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, Mr. Bankman-Fried said.

FTX is working on clearing the withdrawal backlog, said Bernstein. This will help curb liquidity crunches.total asset covers 1:1 Binance came in for a number of reasons. He added, “We apologize for that. They may take a while to settle.

Binance is the world’s most valuable crypto exchange, valued at over $300 billion. FTX raised $US32 billion from Series C investors in January 2003. The company includes Sequoia, BlackRock, Tiger Global, Paradigm, Thoma Bravo, SoftBank, and Ribbit Capital.Luminary Global, Coinbase Ventures, Insight Partners, Lightspeed Venture Partners, Altimeter Capital, Sino Global Other investors include Bond and Iconiq Growth. The company and its FTX US business raised over $2.2 billion across several funding rounds, according to Web3 Signals, a crypto dealbook.

The news shocked the business world and even the crypto community, which has grown accustomed to topsy-turvy developments this year. He bought a series of companies and was hailed as a crypto savior earlier this year. FTX Ventures, the ventures arm of the crypto exchange, is also a major investor in a large number of crypto startups including Aptos Labs, Messari, and other companies. Sky Mavis, according to Web3 Signal, has a web site. Some of the vendors performing network integration include LayerZero, YugaLabs and 1inch Network..

Before contacting Binance, Bankman-Fried attempted to raise additional capital from According to a source familiar with the matter, Investors invested in the company. Axios says its investors are surprised by the move.

Scores of companies are suffering from this week’s event, according to Reuters. Bankman-Fried-backed Robinhood’s shares dropped nearly 20%, while crypto exchange Coinbase’s shares were down about 10% to the day at the time of publication.

In a statement after the deal, Coinbase said it has no exposure to the FTT tokens and “very little” exposure to FTX.

$15 million worth of deposits are available on FTX to facilitate business operations and client trades, FTX said. Coinbase CFO Alesia Haas made the disclosure in a blog post. We have no exposure to Alameda Research and we have no loans to FTX, he said. In addition, as a publicly traded company in the US, we’ve built our business in a way that allows us to be transparent about our track record. Managing risk effectively and prudently for our customers and ourselves is part of our balance sheet strength.

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