History is witness that big corporations end up digesting smaller ones. The laws of the jungle are now going to be applied to the FTX exchange, a cryptocurrency platform that rose to international fame a few years back.
As per the latest media reports, FTX founder Sam Bankman-Fried has been keeping up appearances all summer to fend off creditors, while in reality, the organization has been struggling financially.
To this effect, the native token of FTX FTT has reportedly suffered from massive devaluation. However, to keep the organization afloat, Binance CEO CZ has offered his services. He has officially submitted a letter of intent or LOI to FTX. CZ participated in the purchase of Twitter by Tesla CEO Elon Musk just a few weeks ago.
FTX Officials have Asked for Binance’s Help
CZ has recently told media that FTX officials have been struggling to keep the operations going for a while. The cryptocurrency organization that is known for its Arbitrage model approached Binance officials for assistance and survival.
CZ has also confirmed on Twitter that Binance has signed a non-binding LOI to complete the acquisition process in the future.
The rollover of FTX has already begun. After the completion of the due diligence process, the cryptocurrency organization will join Binance. He posted on Twitter that the current situation of FTX is relatively shaky. Therefore, investors should expect FTT prices to remain in turbulence for a while.
Binance CEO CZ has claimed that his company has come forward to help FTX retain its existing consumer base. However, at the same time, CZ has maintained that the organization has maintained a contract that grants it the freedom to walk out of the deal at any given time.
SBF has pointed out the acquisition of FTX has not affected Binance in any way. Furthermore, the US branch of FTX has remained operating without any changes and retained full liquidity. Meanwhile, the BNB token has surged 20% since the news hit the media.
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