Binance’s CEO, Zhao Changpeng, reportedly consented to purchase FTX, a competing crypto exchange platform.
What the Stakes Present
Sam Bankman-Fried, the owner and CEO of FTX, announced the transaction involving Binance and his company on Tuesday through Twitter.
The inaugural and ultimate shareholders in FTX.com are much the equivalent since we have reached an understanding on a comprehensive acquisition with Binance for FTX.com (currently awaiting DD, etc.).
Pending governmental clearance, Binance’s takeover of FTX would grow the company, which is currently the biggest crypto trading platform in the world.
This follows after major media outlets revealed that Bankman-Fried contacted Elon Himself, the wealthiest businessman, to discuss buying Twitter together.
When Elon agreed to fork roughly $44 billion to buy the social networking firm, Bankman-Fried proposed to add $15 billion.
Grimes, Elon’s former girlfriend, had indeed defended Bankman-Fried and urged the Spacex CEO to approve the FXT CEO’s memorandum of understanding.
Elon first turned down the proposal, and yet ultimately agreed to venture $500 million on Zhao’s account in Binance.
Changpeng responded to the acquisition proposal for FTX by tweeting, “This evening, FTX begged for my aid. There is indeed a severe money shortage.
Having negotiated a pseudo LOI with the intention of completely acquiring FTX.com and alleviating the financing crisis to preserve consumers. In the upcoming days, we’ll be doing a comprehensive DD.
The chairman of Binance said, “This should need considerable work because there is a great deal to cover. Researchers are evaluating the issue in perfect sync because it is quite unpredictable.
“Binance retains the right to terminate the transaction at any moment. As events unfold, we anticipate that FTT will be quite erratic.
The Fate of Market Participants
Before the buyout announcement by Binance’s CEO, there was a brief online argument between the heavyweight CEOs. This back and forth temporarily created a panic among crypto participants which later led to a market crash.
Rumors flying around now state that FTX users might be unable to access their funds even after the completion of the Binance takeover. It is yet to be known what the fate of the users would be in the long run but participants of the ecosystem are all watching from the sideline.