FTX Token (FTT) and Solana’s SOL (SOL) endured a troublesome weekend of buying and selling that noticed altcoins take double-digit losses within the 15%–30% vary, however the tide turned as information broke that Binance could be in the process of acquiring FTX.
On Nov. 8, FTX CEO Sam Bankman-Fried first took to Twitter to announce a liquidity-sharing partnership with Binance. Changpeng “CZ” Zhao, CEO of Binance, agreed to step in and supply liquidity to what was starting to seem like a financial institution run. Bankman-Fried billed the event as user-focused and benefiting the whole trade.
1) Hey all: I’ve a number of bulletins to make.
Issues have come full circle, and https://t.co/DWPOotRHcX’s first, and final, traders are the identical: we’ve come to an settlement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD and many others.).
— SBF (@SBF_FTX) November 8, 2022
CZ additionally confirmed that Binance would step in to help FTX with its liquidity crunch, with the CEO tweeting a letter of intent to buy FTX.
This afternoon, FTX requested for our assist. There’s a important liquidity crunch. To guard customers, we signed a non-binding LOI, intending to totally purchase https://t.co/BGtFlCmLXB and assist cowl the liquidity crunch. We will probably be conducting a full DD within the coming days.
— CZ Binance (@cz_binance) November 8, 2022
Since Nov. 7, FTX has been experiencing liquidity issues after information broke surrounding Alameda Analysis’s odd-looking books. As FTX was combating off withdrawals from their change, even freezing withdrawals at one level, Binance introduced it might promote the whole FTT allocation it possessed.
Throughout the disagreement between exchanges, FTT value dropped 38.7% from $25.71 to $15.76, and SOL value fell 31.23% to a five-month low at $25. After information of a possible settlement between FTX and Binance, FTT value bounced greater than 20%, but it surely nonetheless trades nicely under what had been long-time assist at $22.
The value of BNB (BNB) has additionally suffered over the previous few days, dropping by 14%, however the information of Binance agreeing to amass FTX was adopted by the change token staging a 25% rally throughout the hour.
Associated: Bitcoin price swings over $20K as Binance helps FTX ‘liquidity crunch’
Whereas the story is growing and lots of unknown variables remain, the broader crypto market has reacted positively to the information. Bitcoin (BTC) briefly rallied over $20,000 earlier than slipping again into the $19,800 vary, whereas Ether (ETH) continues to commerce above $1,500.
The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your personal analysis when making a call.
