Crypto Market, FTX Token (FTT) Bullish On News Of Binance Acquiring FTX
Binance Acquiring FTX: Binance CEO and FTX chief Sam Bankman-Fried appear to have found common ground with news of acquisition. CZ and SBF made the announcement almost at the same time, with the Binance CEO stating that there is a significant liquidity crunch associated with FTX. To help FTX cover the liquidity crunch, Binance is fully acquiring FTX, CZ said.
“There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX and help cover the liquidity crunch.”
Meanwhile, the crypto market responded positively to the news of Binance acquiring the Sam Bankman-Fried led company. On an hourly basis, almost all cryptocurrencies are currently trading in green. Bitcoin (BTC) is up by around 4% thanks to the news of an end to what was perceived as the FTX Binance spat. Whether this news will lead to a major crypto rally in the coming days remains to be seen.
The FTX Liquidity Crunch
The whole episode began with Binance CEO CZ announcing that his exchange will liquidate its remaining FTX (FTT) token holdings. Around $584 million worth of FTX token (FTT) were transferred to Binance exchange, which led to an immediate FTT price fall. Also, rumors around potential FTX insolvency led to FUD in the cryptocurrency ecosystem and had a ripple effect on the market. However, SBF maintained that FTX had enough assets to cover all customer holdings. CZ had also warned that Binance will have 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.”
Crypto Rally Soon?
Meanwhile, the crypto market is currently showing great signs of bullish sentiment with FTT rising around 28% in the last one hour. Whereas Binance’s BNB token is up by around 205 in the space of just an hour. With this, the cryptocurrency ecosystem saw bearish and bullish runs in quick succession. Considering that SBF and CZ are two of the most influential and powerful crypto personalities, this could well be a great sign for the crypto market not just in the short term but in the long run too.
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