Crypto Exchange ‘Binance’ Set to Acquire Amid Significant Liquidity Crunch

Today, major crypto exchange Binance announced that they signed a non-binding letter of intent to acquire amid a significant liquidity crunch.

The news comes only a few days after FTX’s balance sheet was leaked online, and rumors of insolvency began to spread throughout crypto Twitter.

Just yesterday, Sam jumped on the bird app defending FTX in a post stating, “A competitor (Binance) is trying to go after us with false rumors. FTX is fine. Assets are fine.”

Though the announcement was short-lived as this morning, Binance CEO CZ tweeted, “This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

“There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real-time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.” said CZ.

For those with their funds held up in FTX outside of the US, Sam announced that all assets would be covered 1:1 pending the acquisition. “It may take a bit to settle etc. — we apologize for that.”

The news surprised many (except maybe @HsakaTrades, who predicted this exact scenario on Twitter). Have you withdrawn your funds from centralized exchanges amid the news? Here at Blockfrens, we like to say, “Not your keys, not your crypto.” Stay safe! What are your thoughts? Let us know in the comments below 👇🏽

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