简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:What happens when the "Big Guy" walks out on a bailout? A havoc, natch.
A deal to buy its troubled rival FTX was abruptly abandoned by the Big Guy of cryptocurrency exchange, Binance, who claimed that the company's issues were beyond their control and ability to help.
The largest cryptocurrency exchange in the world, Binance, claimed to have reviewed FTX's financial records as part of the due diligence procedure. It then announced the deal was off due to reports of mishandled customer funds and alleged US agency investigations.
This reversal is the most recent turn in a dramatic and quick-paced saga involving the most influential figures in cryptocurrency. The whole incident started on Sunday with a Tweet posted by the Chief Executive Officer (CEO) of Binance, ChangPeng Zhao, that Binance would sell its holdings of FTX's digital token, known as FTT, adding to the pressure on FTX. Over the course of the following week, the token had then lost almost 80% of its value.
In conjunction with this, on Wednesday, Binance announced that it would buy FTX amid a spike in customer withdrawals. Just when the markets were curious about whether this deal would fall through (read the previous article regarding this topic here: https://www.wikifx.com/en/newsdetail/202211092634147749.html), on Thursday, Binance dropped the bomb of declining this purchase abruptly.
Sam Bankman-Fried, the 30-year-old star of the crypto world who founded FTX in 2019, also experienced a stunning fall. As he orchestrated a series of bailouts for struggling crypto firms earlier this year, Bankman-Fried, also known as SBF to insiders, frequently drew comparisons to investing legends like Warren Buffett and J.P. Morgan. He has appeared in commercials alongside famous people like Gisele Bündchen as part of an effort to popularise cryptocurrency.
Without a rescue plan, Bankman-Fried's crypto empire, including FTX, could possibly implode. The deal's collapse raises concerns about the customers' finances and casts doubt on the future of one of the biggest crypto trading platforms. Additionally, it signals a continuation of the industry's long-term turmoil.
The biggest cryptocurrency, bitcoin, fell 15% on Wednesday, adding to a recent decline that started on Tuesday after FTX announced that it could not handle a surge in withdrawal requests and was looking to the Binance deal as a lifeline. The token's price on Wednesday evening briefly fell to $15,600, its lowest since November 2020.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Tether hits record $7.7 billion in 2024 profits, $102.5 billion in U.S. Treasury holdings, and grows USD₮ circulation to nearly $120 billion in Q3 report.
Coinbase launches a new Engineering Hub in Singapore, partnering with EDB to foster blockchain innovation and nurture local talent in the APAC region.
Robinhood, Kraken, and Galaxy Digital launch USDG stablecoin with Paxos, aiming to expand global stablecoin use for secure cross-border payments.
In a November 4 filing, legal representatives for Binance and its CEO Changpeng Zhao (CZ) contested the Securities and Exchange Commission’s (SEC) amended complaint, asserting that the SEC merely pays “lip service” to a court ruling that excludes crypto assets from the definition of securities. The lawyers argue that despite this ruling, the SEC has continued to disregard its implications on digital asset trading