Crypto earthquake. Binance offers a hand for FTX but the FTT token is down by 85%. Bitcoin at 17 thousand

Crypto earthquake.  Binance offers a hand for FTX but the FTT token is down by 85%.  Bitcoin at 17 thousand

It feels like a Neflix series where there comes a twist at the end of each episode. Changpeng Zhao (Czech Republic), founder and CEO of Binance, tweeted on the afternoon of November 8: “Ftx has asked us for help, given the massive liquidity crunch.”

the story

In the previous episode, that of November 6, the market recorded a crisis in FTT, the FTX exchange token managed by 30-year-old Sam Bankman Fried, after the same master publicly admitted his intention to close its $500 million position in the token, following an article published in November 2, in the online magazine Coindesk, raised doubts about the solvency of the financial statements of Alameda Research, a company previously managed by SBF itself, in the face of an unsecured $8 billion in debt, but mostly in tokens, mostly FTT but also Solana.

What happens to the debt if the value of the collateral collapses? To that big question — which prompted Chicos to turn away from investing in the rival company — Alameda Research CEO Carolyn Ellison responded by judging the financial statements published in the article as partial, citing various other guarantees of coverage such as opening hedge positions.

Cryptographic speculation

Meanwhile, major cryptocurrencies have been taken over by speculation, as well as a rush to withdraw many investors who have an account with Ftx, while depositing cryptocurrencies. Withdrawals went smoothly until yesterday afternoon when some users reported a delay of several hours. Meanwhile, again via Twitter, SBF itself welcomed the agreement reached with Binance: “I know there have been rumors in the media of a conflict between the two exchanges, but Binance has shown several times that they are involved in a more decentralized world of economy as they work on Improving industry relations with regulators. We are in good hands.”

The market initially reacted well to news of a potential deal, although everything is yet to be decided. The price of FTT returned to $20 after a drop of $14 while Bnb’s coin, Binance’s coin, was flying 10%. However, in the evening, it came to a complete stop. The situation has deteriorated.

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