No Created Token as collateral- Binance Learns from FTX Fall
Binance and FTX – two of the world’s largest cryptocurrency exchanges – are reportedly merging
Binance CEO Changpeng Zhao sparked a brouhaha on Tuesday when he took to Twitter to reveal his company intended to bail out and acquire rival FTX.com. In a tweet, Changpeng Zhao said: “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 FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
While Sam Bankman-Fried, CEO at FTX, also tweeted: “Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD, etc).”
“I know that there have been rumors in media of conflict between our two exchanges, however, Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.”
Concern around FTX’s liquidity began last week when crypto news website CoinDesk released the balance sheet of Alameda Research – a separate business owned by Bankman-Fried. The report showed that Alameda held $14.6billion in assets with $8 billion in liabilities. Their largest asset reported was FTT, shown to be worth $5.8 billion. Following the report, Binance decided it would liquidate its FTT holdings.
Despite the acquisition agreement, FTX’s exchange token, FTT, went into freefall on Tuesday – sinking more than 80 percent to just over $4.
The post No Created Token as collateral- Binance Learns from FTX Fall appeared first on Analytics Insight.
Binance and FTX – two of the world’s largest cryptocurrency exchanges – are reportedly merging
Binance CEO Changpeng Zhao sparked a brouhaha on Tuesday when he took to Twitter to reveal his company intended to bail out and acquire rival FTX.com. In a tweet, Changpeng Zhao said: “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 FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
While Sam Bankman-Fried, CEO at FTX, also tweeted: “Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD, etc).”
“I know that there have been rumors in media of conflict between our two exchanges, however, Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.”
Concern around FTX’s liquidity began last week when crypto news website CoinDesk released the balance sheet of Alameda Research – a separate business owned by Bankman-Fried. The report showed that Alameda held $14.6billion in assets with $8 billion in liabilities. Their largest asset reported was FTT, shown to be worth $5.8 billion. Following the report, Binance decided it would liquidate its FTT holdings.
Despite the acquisition agreement, FTX’s exchange token, FTT, went into freefall on Tuesday – sinking more than 80 percent to just over $4.
The post No Created Token as collateral- Binance Learns from FTX Fall appeared first on Analytics Insight.
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