Binance agrees to buy FTX, FTT price soars

Binance crypto-currency exchange signed a non-binding letter of intent to acquire the entire FTX exchange.

According to Binance CEO Changpeng Zhao, this acquisition will help solve the “problem of theliquidity shortage” of FTX. FTX boss Sam Bankman-Fried says it has come full circle, as Binance will be the first and last investor in the exchange.

Terms of the deal were not disclosed. Binance says it can walk away from the deal “at any time” after saving its crypto rival. Zhao says his company will have to do its due diligence before closing the deal.

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Bankman-Fried says the development has the potential to benefit the entire industry. He also praised Zhao for doing “incredible work in building the global crypto ecosystem” and “create a freer economic world.

The crypto mogul says the exchange is currently working on eliminating the withdrawal backlog after users began complaining about not being able to withdraw their funds.

Over the weekend, Zhao tweeted that Binance had decided to get rid of all of its FTT tokens after speculation began to emerge that Alameda Research, the FTX-linked trading firm, was in financial trouble.

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After it emerged that there was a feud between the two exchanges, Bankman-Fried now claims that FTX is “in the best hands“.

The FTX (FTT) token jumped more than 22 percent following the acquisition deal. At the same time, bitcoin has risen back above the $20,000 level. The BNB token is also up 19.58 percent.

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