Binance buying FTX?!?!

Well looks like I’m a complete idiot as my blog post yesterday seems to have crashed crypto. I kid obviously, but I did say that Bitcoin and Ethereum have held up comparatively well. It appears both are in a free fall right now as I write this as the news of Binance buying FTX has gone public.

The CZ (Binance) and SBF (FTX) “beef” started many days ago and I don’t think many would have guessed that it would end with Binance signing a non-binding LOI to acquire FTX.

I don’t think many know the full details yet, but it appears that Binance’s CEO declared FTX insolvent many days ago and decided to sell FTX’s token $FTT on the public markets which would crash the price. SBF defended his company and called the accusations lies.

Well, CZ was either correctly protecting his company or he was planning to start a bank run at FTX all along. Whatever the reasoning, FTX has liquidity issues and has to be “rescued” by Binance or perhaps another buyer.

This is a bit of a scary situation right now especially for those in web3. SBF is considered a legend that many in the industry looked up to. The thought of FTX being acquired in a fire sale was incomprehensible months ago even in midst of a crypto bear market.

There’s going to be a lot more details in the next few days, but I don’t like where this is headed right now.