The cryptocurrency exchange platform Binance announced thursday that, it will not be acquiring the FTX platform. The founder of Binance Changpeng Zhao shared these datils through public statements that, they have decided not to buy out or acquire its rival company FTX.
As per the statements of Binance, they were hoping to help the customers of FTX with the liquidity crunch but the internal issues and monetary matters inside FTX seems to be beyond the control of Binance. So they have announced to drop its plan to continue the acquisition process.
The issue started this week on Monday, After the founder of FTX platforms, Sam Bankman-Fried decided to communicate with the venture capitalist and other investors to resolve the liquidity crunch at the FTX platform. The founder of FTX, was also in conversation with Binance CEO to work on the liquidity crunch and Binance had announced acquiring FTX through a non-binding agreement. Binance quickly changed its decision, when it was able to see the balance sheet loopholes in the FTX platform along with this it was speculated that due to this improper funds management, the FTX platform may face the US regulator’s investigation on the working mechanism for the FTX platform.
As per the public statements of Binance Company, the company was aspiring to help its rival in this situation and to safeguard the interests of all the users in the crypto space, but looking at the narrow balance sheet and internal unbalanced system of operations, the Binance won’t be able to resolve this issue on its own. So, the Binance platform has decided not to process the company acquisition.
Furthermore, the spokesperson of the Binance platform also stated that they were hoping to support all the crypto retail investors and customers with the help of this deal. He also mentioned that the funds of retail customers have been majorly used by the major players in the industry during their fall into the recent cryptocurrency ecosystem.
The cryptocurrency market is becoming more resilient and companies who are not able to continue with robust business practices in the market operations mechanism in crypto market will eventually fail.
Along with the incorporation of innovative measures which will be developed for the regulated growth of industry and the greater decentralization of the cryptocurrency ecosystem, the crypto regulation environment will help the cryptocurrency platforms to grow more vigorously.
This news has shaken the prices of FTX on cryptocurrency tokens FTT, which is presently traded at $2.5 which is considered as 10 times lower value of the open since the last week.