Business Maverick: Cryptocurrencies plunge as doubts about FTX-Binance deal grow

Binance CEO Changpeng “CZ” Zhao stunned the crypto world on Tuesday with an announcement that his firm was moving to take over rival FTX.com, whichwas seeing a liquidity crunch. Market-watchers linked the jitters to a Zhao tweet that the letter of intent between the two parties was nonbinding.

FTT, the utility token of crypto exchange giant FTX, collapsed by more than 75% to around $4.70 as of lat afternoon in New York,“It’s definitely having to do with a renewal of this crisis that’s being created by FTX, a renewed solvency crisis,” said Strahinja Savic, head of data and analytics at FRNT Financial. “And we still don’t know if this thing with FTX is over and how it will end.”

Terms of the emergency buyout were scant, with Binance saying the agreement came after “a significant liquidity crunch” befell FTX and the firm asked for its help. “SBF and FTX were the biggest patrons of solana. This era is over. Binance has taken over, and they will heavily favour the BNB chain over Solana. Alameda had about $1-billion in locked and unlocked $SOL which they’ll have to sell if insolvent. This puts a huge sell pressure on $SOL.” said Teng Yan, a researcher at digital-asset research firm Delphi Digital, on Twitter.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How to reach South Africa’s biggest business audienceBusinessTech is the best place to reach South Africa’s key business decision makers, thanks to its position as the largest and most influential business news website in the country.
Source: BusinessTechSA - 🏆 24. / 61 Read more »

Business Maverick: Australia launches review into former pilots training Chinese militaryAustralia will launch a review into the obligations former Defence Force personnel have to protect state secrets, following reports Australians were among Western military pilots who had been approached to help train the Chinese military.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: SEC’s WhatsApp probe reaches into private equity with Apollo, Carlyle, KKRFinancial regulators are looking at the biggest private equity firms’ use of WhatsApp and other messaging apps for work, in a signal that the US is ramping up its push to police Wall Street’s electronic communications.
Source: dailymaverick - 🏆 3. / 84 Read more »