Binance, of the world The largest crypto trade by volume made big waves within the crypto neighborhood after the iconic billionaire CEO of the exchanges indulged in a multi-day public spat on Twitter, signing a letter of intent to buy its closest competitor, FTX. Huh.
“It’s like real life ‘Game of Thrones’,” Alex Taub, founder and CEO of DAO-focused platform Upstream, told ThyLike in a message. Today’s acquisition news was bigger than HBO’s current dramatic Red Wedding bloodbath scene.
FTX was quick to spin off the potential sale of its venture as a win. “Thanks to a *huge* [Changpeng “CZ” Zhao]Binance and all our supporters,” said FTX Founder and CEO Sam Bankman-Fried Tweet Regarding the deal on Tuesday, “It is a user-focused development that benefits the entire industry. CZ has done an incredible job of building the global crypto ecosystem and creating a free economic world, and will continue to do so.”
But it is a slam-dunk result for Binance after a heated controversy. Investors, founders and operators throughout the crypto neighborhood noted that the deal strengthens Binance in the midst of a bear market for the sector, raising questions about FTX’s solvency and monetary efficiency.
“It’s crypto winter now, and this is the time when the market checks everyone’s weakness,” Serhi Zhdanov, CEO of cryptocurrency trade EXMO, told TheLike. “Low liquidity is the primary loss to exchanges as gamers, while their primary revenue comes from buying and selling fees. This is enough to test the change [in] Buying and selling volume for the last 12 months to know how strong the scenario is.
“Naturally, it is time for mergers and acquisitions,” Zhdanov said. “We may see more such stories in the near future.”