NEW YORK — The cryptocurrency exchange Binance stated it prepares to buy its competitor FTX Trading, in the mostcurrent example of how fortunes can modification quickly in the crypto world.
Binance CEO Changpeng Zhao stated on Twitter Tuesday that his business had signed a letter of intent to buy FTX since the smallersized exchange was experiencing a “significant liquidity crunch.” The offer was pending due diligence, Zhao stated on Twitter.
The news shook the cryptocurrency world as the mostsignificant crypto exchange had to obviously bail out the 3rd biggest exchange. Prices for significant crypto properties plunged, with bitcoin costs falling more than 10% and ethereum dropping more than 15%.
Shares of openly traded business with heavy exposes to crypto fell dramatically as well, with Coinbase and Robinhood seeing double-digit portion decreases.
Samuel Bankman-Fried, creator and CEO of FTX, likewise took to Twitter to state the offer with Binance would safeguard the exchange’s clients. It’s a unexpected turn of occasions after Bankman-Fried was hailed as rather of a hero earlier this year when he assisted coast up a number of cryptocurrency business that ran into monetary difficulty.
FTX is the newest cryptocurrency business this year to come under monetary pressure as crypto properties such as bitcoin and ethereum have collapsed in worth. Fai