CEO Changpeng Zhao (CZ) made the statement to clarify the air between the FTX exam and the circumstances surrounding its acquisition by Binance. On Tuesday, FTT, FTX’s native token, was doomed, down more than 73%. This happened after the exchange liquidated its Ethereum holdings to mitigate its insolvency crisis.
Before the crisis became known, FTX’s CEO, Bankman-Fried, dismissed rumors of the firm’s financial strain. He said that the assets of the firm are fine and there is no danger of bankruptcy.
However, yesterday, Bankman-Fried revealed the financial test of FTX on Twitter. He appealed to Binance to help him navigate through the massive withdrawal requests.
Binance CEO CZ later announced that Binance would be acquiring the troubled crypto exchange. However, today, the CEO re-announced, stating that the alleged acquisition was not a planned decision. He added that getting FTX is not good for any crypto firm, so Binance does not win.
FTX Crash will increase scrutiny on crypto exchanges by regulators
Despite Binance’s previous relationship with FTX, the move to acquire it was sudden. According to Changpeng Zhao, he spoke with Bankman-Fried in less than 24 hours, leading to the news of the FTX takeover. The Binance CEO explained that the outcome of FTX will put the crypto space on the radar of regulators.
Furthermore, CZ said that the difficulty of obtaining licenses in the global crypto market will increase. He stressed on the need for transparency regarding the assets and reserves of the company. Changpeng Zhao’s advice is in line with Coinbase CEO Brian Armstrong’s advice on public audits and transparency in the industry.
Further in its statement, CZ placed importance on the quality of the product. Given the current state of the market, he encouraged his employees to focus on creating valuable products for users rather than asset prices.
Despite FTX’s liquidity issues and concerns about how it might affect potential buyers, CZ revealed plans to acquire the crypto exchange in its entirety. The CEO acknowledged that the crypto exchange is in a dire liquidity crisis, and the acquisition is a form of assistance to cover FTX’s debts.
Take a peek at the market after the FTT crash
The news of FTX crashing saw the crypto market in massive losses as asset prices fell by 10% overall.
ftt is recorded A total of 83% is down in the last seven days. Its price is currently registering a 77% 24-hour decline from Monday’s price of $22. The coin sells above $2, with a 24-hour trading volume of $3,197,341,326.
The FTT issue has had a cascade effect on the crypto market, with the price of bitcoin dropping by 10% in the past 24 hours. BTC is now trading at $16,151 over the past 24 hours, while Ethereum is down 23.49% and is trading at $1,135.
featured Image From Pixabay, Charts From Tradingview.com