Just over an hour ago, Changpeng Zhao (CZ), the CEO of Binance announced it was acquiring FTX.com, the non-U.S. arm of the FTX cryptocurrency exchange. It follows a rash of liquidations at the FTX exchange since Sunday. That’s when CZ announced Binance’s plans to sell its holdings of the FTX token, FTT, and cited lessons learned from LUNA, the token collapse that caused the May crash.
After the deal announcement, the FTT token price recovered. However, it has since collapsed further to less than $12, a drop of more than 50% since Saturday.
CZ wrote on Twitter, “This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
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