FTX is facing a liquidity crunch, and there is a dire need to protect customers. The venture has, therefore, sought assistance from Binance by offering it to buy the non-US operations. Reportedly, Binance has agreed to move forward by signing a non-binding letter of intent, or LOI.
The acquisition of FTX by Binance will assist in resolving the liquidity crunch and shield clients from losses. Binance has not yet completed its due diligence. FTX anticipates that Binance will finish up the procedure soon.
Changpeng Zhao, describing the issue as dynamic, stated that Binance is evaluating it in real time. Changpeng Zhao, often known as CZ, underlined that Binance reserves the right to withdraw from the transaction at any time. It anticipates FTT to be volatile as the purchase process continues to evolve. Changpeng Zhao is the CEO of Binance and a proud owner of both BNB and BTC. He shared the news with the community via Twitter.
Sam Bankman-Fried, the Chief Executive Officer of FTX exchange, mentioned that FTX has come to an agreement on a strategic transaction with Binance, with teams working tirelessly to clear the withdrawal backlog. All the assets are estimated to be covered at a ratio of 1:1.
SBF stressed that the innovations would ultimately help the industry as a whole, emphasizing that they are customer-centric. SBF acknowledged Changpeng Zhao’s contributions to the global cryptocurrency industry.
Additionally, he addressed the media-circulated rumors. There are rumors that there is a gap between the two platforms, but Binance has repeatedly proven that this is not the case. Binance remains dedicated to fostering a more decentralized global economy and is seeking to improve its interactions with regulators. To reiterate, Binance.us and FTX.us will continue to operate normally despite these changes.
The development of Binance is impressive. It was founded in 2017, and in less than 5 years, it is accelerating the acceptance of cryptocurrencies while collaborating with the appropriate authorities and regulators. Binance, with headquarters in Malta, is home to over a hundred cryptocurrencies and over a hundred trading pairs.
According to a Binance review, the withdrawal fee is dynamic and is calculated by using a 0.1% trading fee. Traders can approach the customer service department by filling out a 24/7 accessible online help form.
Binance functions with a vision to increase financial freedom across the globe and significantly improve lives around the world. The ecosystem of Binance offers services like eWallets, Mobile Trading, and Trading Account.
The signing of a non-binding LOI is the first step that could lead to Binance’s total acquisition of FTX’s non-US operations. Based on Binance’s due diligence, additional changes are anticipated.