The cryptocurrency industry would remember November 7 as one of the worst days for the cryptocurrency industry. Especially, the day would be a bad memory for the entire FTX community.
FTX Hit a Stop
It was the day when the balance sheet for the FTX exchange was leaked causing a great crash for the platform. As FTX was found backing FTT at the Alameda Research, things got out of hand for Sam Bankman-Fried.
Initially, Sam Bankman-Fried (SBF) made several claims about fixing the problem and having all the investors covered. However, as the news started to sink in, things started to look like a complete mess.
Binance Tried Saving the Day
A day after the FTX exchange started to face its demise, Binance, the largest crypto exchange and FTX’s rival announced it would acquire the troubled exchange.
SBF also confirmed that they were forming a strategic partnership with Binance to help bring FTX out of the troubling times.
Despite being claimed by both sides that the deal would occur, neither side revealed what the deal would cost.
Binance has Pulled Out
The announcement did bring back positive sentiments toward FTX Token (FTT). After Binance’s announcement, the FTT price picked up a bit until the largest exchange officials made another announcement.
A day after confirming the deal, Binance announced it was no longer interested in proceeding with the deal. The officials confirmed that they were no longer going to make the deal to acquire FTX.
The Binance officials also released a statement revealing why they have backed out of the deal.
As per Binance, their aim was to ensure that the customers at FTX were provided with liquidity support. Upon their careful analysis of the situation, they realized that the matter is beyond fixing.
Simply put, the situation is beyond their ability to fix the problems. Therefore, they have decided that they would no longer pursue the acquisition of FTX.
The CEO at Binance, Changpeng Zhao did reveal that they were in the process of acquiring FTX but he did warn that they would work on a due diligence process.
Until the process is complete, they would not make a move and would see exactly how things turn out on the FTX side.
FTT Price Movement
As the deal fell through, the FTX Token has taken another hit to its value. The initial news involving Binance did manage to push FTT’s price a bit but overall, the situation has continued getting worse.
Due to the constant decline in the past few days, the value of the FTT has dropped to $2.57. On the other hand, the value of BNB had shot up 10% to reach a high of $368.07 as the news of the acquisition started to float.
As of now, the value of BNB is down 20% and it currently stands at $288.91.