Binance to save the cryptocurrency market and take over the FTX exchange?

Hot in the cryptocurrency market. And more than usual. The reason is a huge token sale FTT, native currency Cryptocurrency exchanges FTX. Interestingly, the declines, which translated into the entire market, began with a sell-off commissioned by Binance exchange. And now Binance wants to ... save a competitor, or simply take it over. Previously, the company itself supported the competitor's development, but it turned out to be too fast.

Recall: Binance cryptocurrency exchange was established in 2017. It was founded by Changpeng Zhao, referred to in the industry as CZ. It was not the first, but the stock exchange quickly gained new customers thanks to its intuitive panel, good security and modern solutions. Today it is the undisputed market leader, the world's largest centralized cryptocurrency exchange.

Sam Bankman-Fried, CEO of FTX.

Two years after Binance was founded, the FTX cryptocurrency exchange, led by Sam Bankman-Fried (SBF). It was growing fast, so caught the attention of Binance. The company decided to invest in a competitor. The collaboration began with FTX building an institutional product offering for the Binance ecosystem. It was a boom time, so cryptocurrency projects grew at an insane pace. So there was a risk that the "vassal" would be too strong and would try to rebel against his "master".

FTX is the world's second cryptocurrency exchange

Therefore, in 2021, Binance suddenly refused another investment tranche. The surprised journalists were told that there was nothing unusual about it. It is simply a change in investment priorities and the decision has no bottom line. In this case, however, the golden rule popular in the USA and related to the FBI proved to be true: if the office denied that it had anything to do with a given event, you can almost be sure that it carried out the entire operation.

In 2022, the development of FTX placed it in second place among all cryptocurrency exchanges in the world in terms of transaction volume. However, it's important to remember that the leader - Binance - still had 10 times the turnover. But the rapid growth of FTX has made Binance increasingly look back.

Business versus politics

Especially since Sam Bankman-Fried was getting bolder and began to engage in politics to win the favor of the authorities. The FTX boss even started funding Joe Biden's campaign, supporting him with millions of dollars.

The business struggle was getting closer to politics. Sam Bankman-Fried, a Native American, backing the new president, versus a billionaire without a home, a Chinese entrepreneur who admits he has all his fortune in cryptocurrencies. It was getting scary.

Bankman-Fried himself also stood by the crypto industry, which values ​​freedom. He wanted cryptocurrency market regulations to be more restrictive. The inconvenient facts for FTX have also begun to emerge. Or rather, threatening his financial stability. While the balance sheet shows that the exchange has as much as $ 14,6 billion in assets, most of it were FTT tokens that the company issues itself. Hence the simple conclusion: it is enough to lower the FTT price for the entire stock exchange to have gigantic problems.

Binance decided to take this opportunity and announced that it is selling all FTT tokens. It was enough to refer to the fall of Luna for the avalanche to start and everyone started selling tokens. During the day, the discount reached 70 percent.

“We've supported FTT before, but we won't pretend to be in love after divorce. We are not against anyone, but we will not support the people behind our backs lobbying against other players in the industry " - CZ explained on Twitter.

FTX is collapsing? Binance: okay, we'll help

Once FTX was on the verge of collapse, there was information that Binance was interested in its rival. Only now there is no question of investing, but a complete takeover.

- It looks like Binance will be the first and last investor of FTX - wrote Sam Bankman-Fried, the creator of FTX, bitterly.

Binance has already signed a preliminary FTX purchase agreement to help ensure the liquidity of the exchange. So far, however, this has not helped the market. Prices of virtually all cryptocurrencies are going down. USD 6 billion has already been withdrawn from the FTX exchange itself, because everyone wanted to make it before a possible collapse. Immediate liquidations of positions caused realities on all exchanges. Bitcoin became cheaper by 3 in 3 days. USD and November 9, 2022 at the time of writing this article costs USD 17.6015,55. Previously, it seemed to permanently beat the price of 21. USD and we are at the beginning of a new uptrend. Now it all depends on how the regulators react to the agreement between the two largest exchanges and whether FTX will actually work or Binance was about the complete liquidation of the competitor, not its acquisition.