FTT token collapses by 71% after Binance announced its purchase of the FTX exchange

FTX users have withdrawn over $6 billion from the platform in the last 72 hours

09.11.2022 - 07:25

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3 min

What’s new? On November 8, Binance CEO Changpeng Zhao said that he has entered into an agreement for a strategic deal with the FTX exchange, which involves a full acquisition of FTX. The deal is designed to address the lack of liquidity and the withdrawal of users’ funds from the exchange. Amid this news, the native token FTT continued its decline. As of November 9, 07:00 UTC, FTT is trading at $5,02, according to Binance.

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days. — CZ 🔶 Binance (@cz_binance) November 8, 2022

What else is known? Over the past 72 hours, more than $6 billion has been withdrawn from FTX, Unfolded reports on Twitter, citing business correspondence of FTX owner Sam Bankman-Fried with employees.

CRYPTO EXCHANGE FTX SAW AROUND $6 BLN OF NET WITHDRAWALS IN 72 HOURS BEFORE TUES MORNING - CEO SAM BANKMAN-FRIED IN TELEGRAM MESSAGE TO STAFF — unfolded. (@cryptounfolded) November 8, 2022

Bankman-Fried’s fortune fell from $16 billion to $991 million in 24 hours. FTX’s liquidity and withdrawal problems have negatively impacted the entire cryptocurrency market. Bitcoin was down to $17 166 and Ethereum was down to $1233 on the night of November 8-9.

The decision to partner FTX and Binance was made as a result of the conflict between the two exchanges. FTT began to fall after Binance announced plans to liquidate its positions in FTT completely. Later FTX users started to report problems with withdrawals of over $1000 in one transaction. Experts at The Block speculated on the basis of on-chain data that withdrawals had been completely suspended.

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