While the bear market is blowing a gloom on the exchanges, for FTX, it’s time for new acquisitions. The cryptocurrency exchange platform is said to be about to acquire a majority stake in the capital of Huobi Global, its competitor. An acquisition valiantly orchestrated by the founder of Huobi himself.
Huobi Global, the new conquest of FTX?
According to a Bloomberg report, Leon Li, the founder of Huobi Global, wants to sell his shares in the exchange. This corresponds to 60% of the company’s capital. Moreover, Li is said to have already started discussions with industry heavyweights such as Sam Bankman-Fried, the CEO of FTX, and Justin Sun, the founder of the Tron blockchain.
As part of this exchange, he would have estimated the value of Huobi Global in the range of 2 to 3 billion dollars. In other words, the sale of its stake should earn it more than a billion dollars. That said, if this deal goes through, it will mark one of the biggest deals in the crypto industry.
A news that does not go unnoticed
On Twitter, Justin Sun denied the claims of the American media on possible negotiations with Huobi. For their part, Huobi Global and FTX have yet to comment on the rumor.
However, the publication of the Bloomberg article caused the Huobi Token (HT), the native token of the exchange, to jump by almost 25%. Indeed, in a short period of time, it went from 4.37 dollars to 5.45 dollars. As of this writing, the token is trading around $5.24 according to CoinGecko.
The recent downturn in the cryptocurrency market offers some significant leverage to make investors juicy and maximize their gains. Amid the turmoil, FTX has committed nearly $1 billion to acquiring or bailing out struggling companies such as BlockFi. This support has not always been welcomed, particularly in the case of Voyager Digital, which refused its restructuring offer.
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