The crypto industry is looming as the world’s largest exchange for digital currencies like Bitcoin, Binance, wants to take over most of the business of rival FTX. “This afternoon FTX asked for our help. There is a significant liquidity squeeze,” Binance CEO Changpeng Zhao tweeted on Tuesday.
After Zhao himself raised doubts about FTX’s cash reserves with a tweet on Sunday, huge funds have been withdrawn from the trading platform in recent days. According to US media, customers wanted to withdraw about six billion dollars within 72 hours. That is what FTX boss Sam Bankman-Fried would have said to employees.
The 30-year-old crypto billionaire took to Twitter to confirm liquidity shortages and a non-binding acquisition deal with Binance for FTX.com, his group’s main business. Over the next few days, Binance would check the competitor’s books. The crypto exchange’s US operations are excluded from the deal.
All customers are protected and paid in full, assured Bankman-Fried. He had previously claimed nothing was wrong and dismissed rumors of a cash shortage as false. The uncertain situation at FTX caused nervousness in the crypto market. The Bitcoin price temporarily fell by more than 13 percent on Tuesday to around $18,000. Since the beginning of the year, the price of the oldest and most well-known cryptocurrency has fallen by more than 60 percent.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
