Untitled design 6There has been an ongoing cold war in the crypto space between Binance and FTX. Two days ago, Binance CEO, Changpeng Zhao mentioned that the crypto exchange company will sell its remaining FTT holdings, as part of its exit plan from FTX equity beginning last year. Although CZ didn’t mention how much of the FTT coins his firm would sell, he made it clear that the largest crypto exchange platform intends to liquidate all the remaining FTT coins on their books.
On the same day, Caroline, Alameda’s CEO responded to Binance’s CEO that her firm is ready and willing to purchase all remaining FTT coins held by Binance at $22. The Tweet assumed a rather convincing tone, asking CZ to minimize the market impact of selling off his FTT by selling it to Alameda Research.
The reported conversations on Twitter sparked mixed emotions amongst FTT traders that led to high price volatility amid the speculations. The back and forth between CZ and SBF’s trading firm came after it was rumoured that the financial health of Alameda Research is bad, following a leaked balance sheet of the firm.
The balance sheet showed the firm had $7.4 in undefined loans, $14.6 billion in assets, and $8 billion in liabilities. Yet they held $5.8 billion in FTT tokens. The CEO, Caroline responded that her firm mentioned more assets to the tune of $10 billion that aren’t reflected in the leaked balance sheet.
Following the responses, CZ mentioned that the Binance exchange wasn’t taking a jab at the FTX exchange, and instead, made the decision to sell the FTT tokens since they had held them for a long.
The Non-Binding LOI: FTX, Binance
Crypto traders on FTX and FTT holders had been experiencing a rather uncertain time, following the rumours. The exchange platform users and FTT holders were in constant worry about the cryptocurrency’s future.
A few hours ago, before this publication, the Binance CEO, CZ, announced that they have a non-binding Letter of Intent with Sam Bankman’s exchange. As mentioned in the Tweet, FTX asked for help from Binance because of an existing liquidity crunch.
Binance has agreed to the request in order to protect users as well as FTT holders. The LOI shows that Binance intends to fully acquire FTX and cover the Liquidity crunch. The CEO mentioned that the situation is highly dynamic and warned that the FTT tokens could remain highly volatile in the coming days.
The FTX, Binance LOI is unbinding, meaning Binance will conduct full due diligence before following through with the buyout. The Binance exchange reserves the right to walk away from the agreement in the coming days.
The shocking turn of events is somewhat a relief to both FTX users and FTT holders after it was noted that Stablecoin withdrawals had been temporarily halted on the FTX platform. The possible buyout by Binance is essentially a positive outcome for crypto holders, as the move protects them from unprecedented outcomes within the crypto space that could lead to massive losses.
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