The cryptocurrency exchange has canceled the acquisition after Binance revealed its intention to buy rival FTX on Tuesday.
The company backed out of the agreement one day after cryptocurrency exchange Binance revealed its intention to buy rival FTX for an unknown sum.
According to the exchange, the purchase will not be pursued after due diligence.
It claimed that information about mismanaged customer funds and purported US agency investigations had influenced its choice.
Changpeng Zhao, the CEO of Binance, announced the deal on Tuesday but cautioned that it would not go through until the due diligence process was finished.
Zhao emphasized that the acquisition had not yet been consummated in a letter that was distributed on Twitter and sent to staff members at Binance on Wednesday morning. He instructed his staff members not to trade FTT, the native utility token used to obtain trading fee rebates on FTX, during this time.
Despite a small surge following news of the impending deal, the FTT token dropped as low as $2.57 in the previous day, according to CoinGecko data. On hearing of the impending deal, Binance Coin (BNB), FTT’s counterpart on Binance’s exchange, soared 10% to $368.07. BNB was trading at $288.91 on Wednesday afternoon, down 20% from the previous day.
Several businesses, including Crypto.com, Tether, Coinbase, and Genesis, have cut ties with FTX over the past day.
The two biggest centralized cryptocurrency exchanges in the market would have been united if the transaction had gone through. According to Coingecko, as of Wednesday, Binance accounted for $49 billion and FTX for $4 billion in trading volume over the previous day or about one-fourth of the total crypto trading volume.
