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BREAKING: FTX Is Coming To An Agreement To Be Acquired By Binance

Binance has agreed to buy FTX amid panic that has raised concerns that Sam Bankman-Fried’s crypto exchange is slowly collapsing.

The SBF announced the decision on Twitter:

The controversy surrounding FTX started with Binance CEO Changpeng Zhao‘s weekend revelation that his exchange will sell its FTT tokens. Zhao also confirmed the agreement on Twitter by stating that the two exchange industry titans signed a non-binding letter of intent.

Prior to agreeing to the transaction with Binance, FTX sought to acquire outside financing from venture capitalists. Those acquainted with the company’s intentions stated that it was looking to raise capital at a valuation of $10 billion to $20 billion.

The exchange, which actively invests in businesses throughout the sector, is one of the biggest derivatives exchanges in the cryptocurrency market. Companies in the market received credit lines totaling $750 million from FTX and Alameda.

At the time of the news, the FTT token had a significant rebound from $14.3 to $17.92.

FTT daily chart. Source: Coincu

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.