Amidst what appears to be a liquidity scare, Binance has agreed to purchase FTX owing to the possibility of FTX not surviving according to an announcement from Binance.
Sam Bankman-Fried, FTX founder 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.),”
The announcement on his tweet continued, “Hey all: I have a few announcements to make. Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance.”
Cangpeng Zhao, Binance CEO, also tweeted to confirm the deal, “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.”
Both crypto exchange platforms had signed a non-binding letter of intent with complete due diligence coming up in a few days.
Following this takeover FTX’s FTT token rallied 20% to $17.50 from about $14.50. Binance’s BNB token jumped 8% from $326 to $355.
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