BNB surges 20% in 2 hours after news of Binance’s planned acquisition of FTX, but falls later
Based on the current FTX situation, the Binance CEO also predicted that FTX FTT will be extremely volatile in the near future.
BNB issued by Binance, the largest exchange by volume, surged more than 20% in two hours after Binance CEO. Changpeng Zhao (CZ) announced plans to acquire FTX.
However, later, the price of BNB declined by more than 20% to its current price of $315.9.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. In order to protect users, we signed a non-binding LOI, fully intending to achieve https://t.co/BGtFlCmLXB And help cover the lack of liquidity. We will be conducting a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
The Binance CEO described the current FTX situation as “dynamic” and predicted that FTT would be highly volatile in the coming days. Zhao also confirmed that Binance could withdraw from the deal at any time.
Furthermore, the CEO of FTX has confirmed that full due diligence is expected in the near future.
2) Our teams are working on clearing the backlog of withdrawals. This will address the liquidity crunch; All assets will be covered in 1:1. This is one of the main reasons why we asked Binance to come on board. This may take a while to settle – we apologize for that.
— SBF (@SBF_FTX) November 8, 2022
In addition to the increase in BNB price, FTX native token FTT also Enhanced It lost 40% within a few hours, but later fell by more than 75% to its current price of $5.412.
The sequence of events has been revealed from mass evacuation Assets from FTX in the last two days after CZ announced Binance will sell its shares in the FTT repository. As a result, FTX coffers were drying up at the time of Binance volume increased As assets flowed into major cryptocurrency exchanges. As a result, some feared that FTX would collapse like the Luna debacle and face bankruptcy.
However, Binance became the first and last investor to acquire FTX. After this, there was huge speculation, which led to a massive investment in BNB in a matter of hours, increasing its market cap $2.76 billion to $3.68 billion, Thus contributing to its huge price hike.
Currently, BNB is trading at $317.2 with a loss of 5.85% in 24 hours.
Credit : cryptoslate.com