Following heated exchanges on Twitter, Binance is set to acquire fellow crypto exchange FTX to calm a run on withdrawals.
In Brief:
FTX experienced a rush of withdrawals early this week.
It followed comments from Binance’s Chief Executive that Binance would be selling around $2bn worth of crypto tokens created by FTX in previous years.
Now, Binance has signed a non-binding letter of intent to fully acquire the business.
What does this mean?
The run on FTX happened following unspecified claims by Binance of “revelations” about FTX, so the sale is somewhat forced following heated exchanges between the two Chief Executives on Twitter. Binance has invested first and foremost in FTX to help stem and support the mass withdrawals from the platform – which has so far proved effective in calming the market – and it’s possible this will end up as a long term partnership or takeover in the future.
