​What implications await the crypto market after FTX’s collapse. Open letter from Binance CEO

What’s new? Binance is inclined to back out of acquiring the FTX crypto exchange, which is facing liquidity problems as a result of the collapse of the rate of the native token FTT. This is reported by CoinDesk, citing a source close to Binance. Notably, the information came less than a day after the start of the due diligence of FTX to determine the amount of liabilities and identify possible violations. Earlier, Binance CEO Changpeng Zhao published an open letter in which he said that the collapse of FTX has shaken the credibility of the entire crypto industry. Also, in his opinion, this situation will provoke increased regulatory attention and make it difficult to obtain licenses for other crypto companies.

CoinDesk’s material

What else did Zhao write? The head of Binance urged his employees not to comment publicly or internally on the deal, and those not involved in the process not to ask questions. He also advised Binance employees not to trade FTT tokens because the due diligence for the deal is not yet complete.

According to the businessman, people now think that Binance is the biggest player in the industry, and “will attack us more.” However, he added that this is not a bad thing, as the platform is “used to being open,” stressing that it is now more important than ever to increase its “transparency, proof-of-reserves, insurance funds, etc.” Earlier, Zhao urged all crypto exchanges to publish proof-of-reserves reports. The proposal has already been supported by OKX, KuCoin, Huobi, and Gate.

In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5 — CZ 🔶 Binance (@cz_binance) November 9, 2022

A possible deal to acquire FTX from Binance became known on November 8. Zhao noted that it was concluded at FTX’s initiative on an emergency basis. Terms were not disclosed, as they may have changed given the current situation.

Analysts at investment firm Bernstein said that if the deal closes, Binance will take 80% of the global crypto market. And Real Vision CEO Raoul Pal said THAT the FTX takeover would attract the attention of antitrust regulators.