The world’s largest crypto exchange, Binance, is exploring an option to buy the world’s fourth-largest exchange, FTX, according to a tweet sent out by Binance’s CEO Changpeng Zhao. He explained that FTX was facing a liquidity crisis due to which they sought help from Binance. The transaction is not complete as Zhao revealed that only a non-binding LOI (Letter of Intent) had been signed, and the exchange will be conducting a thorough evaluation in the coming days. It means that Binance can pull out of the deal at any given point in time. Zhao also clarified that the FTX’s native token, FTT, will continue to be “highly volatile in the coming days''. The terms of this deal are not clear as they were not disclosed but FTX's U.S. division is not included in the deal, as per a statement released by FTX’s CEO Sam Bankman-Fried. https://twitter.com/ShaanVP/status/1590029012000440320?t=-IuYsaU_9BMIOn8fqxTXqA&s=19 Why it matters: The announcement is notable because it is an indicator that things may be far worse than previously imagined in the crypto market. The global economic downturn has wreaked havoc on crypto exchanges as they are finding it difficult to sustain themselves in the face of dropping volumes and sluggish price movement. The deal is of grave concern given the circumstances under which Binance managed to acquire it. The preceding events cast a dubious light on Binance’s role in triggering the liquidity crisis and how it conveniently swooped in to rescue the company at the eleventh hour. It is likely to make people…
