Binance vs FTX: Is War Really Declared?

For the past few weeks, rumors have been rife about the possible takeover of the FTX crypto platform by Binance. On November 8, Changpeng Zhao even confirmed the information. He would have already signed a letter of intent to purchase. Turnaround: Binance finally retracts. The crypto company offers several explanations to support its decision.

Binance officially announces that it no longer wishes to buy the FTX crypto platform

Purchase retraction: Binance explains!

The torment that hovered over the cryptosphere 48 hours ago is over! Now the crypto community also knows more about the creditworthiness of FTX, the world’s fourth largest crypto exchange. Binance officially announced it on their account Twitter November 10: she gives up the purchase of the FTX crypto platform. The decision follows the due diligence process conducted by Changpeng Zhao and his team.

Specifically, Binance cites issues with mismanaged funds within the FTX exchange. Its decision to withdraw would also be explained by the numerous investigations of which the platform is currently the subject. “At the beginning, our hope was to be able to help FTX customers provide liquidity. But the issues are beyond our control or beyond our ability to help,” one explained on the tweet thread.

What impact on the crypto market?

We can only admit it: times are tough for cryptocurrencies (and crypto players). Since the beginning of the year indeed, the crypto market has suffered from the poor economic conditions. Added to this is the phenomenon of inflation that affects all countries around the world.

While many saw hope in this takeover project, the outlook will have to be reviewed quickly. With the cancellation of this acquisition, the crypto exchange FTX will indeed (and inevitably) register more deficit. The latest data collected shows a loss of several billion dollars, with the price of FTT falling by 80%. In the past 24 hours, FTT tokens were trading below $5 (compared to around $25 last week).

Binance and FTX have positioned themselves as great competitors since the emergence of the crypto market. But currently, the future of FTX is uncertain. While this crypto platform is currently going through a difficult phase (to which is added a significant depreciation in the value of the assets of its CEO, Sam Bankman-Fried), Binance seems to be at the peak of its form. In any case, one thing remains certain: the world of crypto today is facing great difficulties.

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