Binance’s CEO has stated the intent of the company to acquire FTX exchange in what is described as an attempt to help cover the liquidity crunch.
In a recent development, the CEO of Binance, Changpeng Zhao, often known as CZ, stated on Twitter that they had signed a non-binding Letter of Intent (LOI) to acquire the FTX cryptocurrency exchange in its entirety.
According to CZ, FTX executives contacted the exchange due to a major liquidity shortage. To help offset this, Binance would acquire the entire FTX cryptocurrency.
In a series of tweets, he added the following:
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.
Binance, the largest exchange in the world, was the first to support FTX, but as FTX exchange gained fame, their collaboration began to disintegrate.
The two CEOs have been critical of one another for some time, but this week Zhao said that the exchange will be selling its FTT stake, the native token of FTX exchange, which it had acquired as part of its exit from the company last year.
In a tweet, Sam Bankman-Fried said:
“A *huge* thank you to CZ, Binance, and all of our supporters. This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.”
