Analysis Binance FTX News – Why did World’s leading Crypto exchange FTX asked help from Binance CEO?

Analysis binance ftx deal
Analysis Binance FTX Deal (Analysis Binance FTX News update)

It was a breathtaking day in the world of crypto, a volatile and strange place even on the best days.

Cryptocurrencies have fallen all morning on concerns over the solvency of FTX, an exchange platform founded by Sam Bankman-Fried aka SBF. He is an entrepreneur whose name often appears with descriptions such as ‘Genius’, ‘Savior’, ‘White Knight’, ‘Digital Warren his Buffett’. In short, he is a celebrity in the cryptocurrency industry. (and he’s a 30-year-old billionaire).

SBF has denied rumors about FTX’s liquidity issues, but said bigger rival Binance will liquidate his $580 billion holding in FTX’s internal tokens.

Then, in a very unexpected twist, Binance said he offered to buy FTX to solve the liquidity crisis.
“This afternoon, FTX asked for our help,” The CEO of leading crypto exchange Binance Zhao “CZ” Changpeng tweeted on Tuesday, citing a “major liquidity crisis.” Given the general public feud and obvious discord among Bankman-Fried and Zhao, nearly nobody noticed this bomb coming.

“This really shocked us,” said a crypto expert. “The failure of FTX exchange is like the Lehman Brothers event in space.

Analysis Binance FTX Deal : Details about SBF

SBF is one of the maximum influential figures in crypto. Over the summer, as virtual property tumbled withinside the so-called “crypto winter,” Bankman-Fried ponied up about $1 billion to bail out corporations and shore up property to attempt to hold the whole enterprise from collapsing. He additionally have become the unofficial ambassador, peddling the promise of crypto to a skeptical mainstream economic world.

On Tuesday, though, the savior had to be saved.

Fears over FTX and Alameda Research, Bankman-Fried’s buying and selling house, started out closing week after a file posted via way of means of information web website online CoinDesk recommended that a lot of Alameda’s stability sheet turned into made from FTT, that is a incredibly illiquid token.

Those fears have been fanned via way of means of none apart from Zhao, the top of Binance, who stated his business enterprise might promote all of its holdings — about $580 million — in FTT, “because of current revelations.” His statement shocked the buyers and triggered the Dump in FTT Token. In essence, Bankman-Fried turned into getting a capital name for $580 million, and did not have the liquidity to satisfy it.

WHAT next after this Business war between Binance and FTX?

While there is still much to be revealed, we can expect the digital asset to remain volatile until the details of the FTX-Binance deal are announced. Some analysts say the connection could accelerate Washington’s efforts to regulate crypto.

Crypto may have just avoided the Lehman shock, but it is currently in uncharted territory and it is not clear who would be willing to take on the next bailout should Binance get into trouble.

The industry experts are looking into the issue. There may be long term implications of this deal.

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