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Crypto Fintech & e-commerce

Binance-FTX Deal A No-Go

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Just as fast as the deal for acquiring FTX.com — the non-U.S. exchange associated with — was made, it appears to have disappeared.

Early Wednesday, it was Binance was likely to walk away from the deal and then by the afternoon a Binance spokesperson told the company will not pursue an acquisition of FTX.

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“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” the spokesperson told the news service.

It’s unclear where this may leave FTX, the fourth largest crypto exchange by volume. 

During the weekend, Binance CEO Binance — the largest exchange by volume — would sell its holdings of FTX’s native token, FTT.

“Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books,” he said.

On Monday, FTT witnessed a major sell-off amid concerns about the solvency of FTX and Bankman-Fried’s other trading firm after the push by Binance. Earlier this month, came out that Alameda had a large portion of FTT on its balance sheet, possibly helping prop up its value. Alameda has disputed that claim.

FTT prices dropped like a rock amid the controversy, and concerns were further fanned when users reported slow withdrawals on FTX’s platform. Bankman-Fried has since said the company is working to clean out a backlog.

Some of those fears seemed to be relieved Tuesday when Zhao his company would acquire FTX. 

“There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire and help cover the liquidity crunch,” he tweeted.

FTX’s collapse is stunning when considering earlier this year it raised $400 million at a valuation. According to Crunchbase, FTX has raised nearly $2 billion. Investors in FTX include the , Singapore’s and .

Zhao and Binance also were early investors in FTX.

has estimated Bankman-Fried’s net worth to be $17 billion.

ٰܲپDz:Dom Guzman

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