Binance is now surprisingly buying out FTX. Both Binance and FTX are trading platforms for cryptocurrencies. However, FTX seems to have liquidity problems.
FTX is acquired by Binance; Image: Reuters
Changpeng Zhao, CEO of Binance wrote in a tweet that FTX has asked Binance for help. Apparently, FTX has liquidity problems due to the crypto market collapsing in recent months.
The amount Binance is offering for FTX is not known yet. The deal is only based on the non-US business. For the US business, Binance gets 5% of the total revenue. This is to ensure that FTX can bridge the liquidity problems.
The crypto market reacts negatively to this news. Solana loses over 45% in value in 24 hours, Bitcoin loses 15% in value, Ethererum is down 25%. BNB from Binance also loses 24% in value, FTT from FTX even loses 80% in value.
