The world’s largest cryptocurrency company, Binance has reached a deal to acquire its rival FTX.COM for an undisclosed sum.
The deal was confirmed by FXT founder and CEO Sam Bankman Fried on Tuesday confirming several a deal that had been rumored to be in the world amongst crypto enthusiasts.
In his tweet, he mentioned that things had come full circle, and FTX have come to an agreement on a strategic transaction with Binance to acquire his company.
The transaction excludes FTX.US, a distinct company focused on the United States. One of the first investors in FTX was Binance.
See tweet
1) 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 for https://t.co/DWPOotRHcX (pending DD etc.).
— SBF (@SBF_FTX) November 8, 2022
What is going on? It’s unclear whether the proposed merger will be allowed or how the combined business will be organized.
- This comes as a great shock considering that FTX and Bankman-Fried have spent a significant portion of this year purchasing the distressed assets of crypto enterprises that have been decimated by falling cryptocurrency values in recent months.
- The larger cryptocurrency market is currently booming as well amid indications that FTX won’t implode due to alleged liquidity problems.
- Several cryptocurrency experts on Twitter opine, FTX.COM was facing liquidity challenges which may have precipitated in this sale.
Immediate Impact: In light of the recent news, popular currencies like Bitcoin, Ethereum, Solana, Dogecoin, and others have all seen large price increases.
- However, the impact of the news shows BNB, Binance’s coin is currently up 8.16% at the time of writing this article while.
- Bitcoin was down 4.32% and ETH is down 4.4% trading at $19,800 and 1510 respectively.
