The CEO’s of both companies have officially announced on twitter that Binance will be acquiring FTX. This deal does not include the US based exchanges of each company.
“Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.” – Binance CEO Zhao.
This is good news for BNB, as it has risen 10% following the news. These are two of the largest Crypto exchanges, merging together, Binance and FTX combined on Tuesday for $34 billion in trading volume, a one quarter of all trades on centralized exchanges.
The downside to this news is that FTX had to announce a short suspension of withdrawals which droped the price of FTT slightly. Bankman-Fried wrote that the liquidity crisis they are facing at FTX is one of the main factors to the acquisition.
Binance recently moved over $500 million of their FTT tokens and plan to liquidate their postition in the market.