It feels like a Netflix series where the twist comes at the end of each episode. Viewers and investors of the latest episode of this token battle between major exchanges in the cryptocurrency world were stunned by tweet Changpeng Zhao (Zhao Zhao), founder and CEO of Binance, who wrote on the afternoon of November 8: “FTX asked us for help under The big liquidity crisis ».
the story
In the previous episode, the one on November 6, the market recorded a crisis of Ftt, the Ftx exchange token run by 30-year-old Sam Bankman Fried (Sbf), then over the weekend, the same Cheek publicly admitted his intention to close his $500 position. $1 million in the token, after a Nov. 2 article in the online journal Coindesk raised doubts about the solvency of the balance sheet of Alameda Research, a company formerly run by Sbf itself, facing $8 billion in unsecured debt but mainly from the tokens. , mostly from Ftt but also from Solana.
What happens to the debt if the value of the collateral decreases? To that big question — which prompted CZ to divert from investing in the rival company — Alameda Research CEO Carolyn Ellison responded by judging the balance sheet published in the article in part, citing other covering collateral as diverse as the opening of hedge positions.
Crypto speculation
Meanwhile, speculation gripped the major cryptocurrencies, as did the race to withdraw from many investors who had an account with Ftx, with related cryptocurrency deposits. Withdrawals ran smoothly until yesterday afternoon when some users reported delays of several hours. Meanwhile, again via Twitter, Sbf himself welcomed the agreement reached with Binance: “I know there have been rumors in the media of a conflict between our two exchanges, however Binance has proven time and time again that it is engaged in a decentralized global economy as it works on Improve industry relations with regulators. We are in good hands.”
The market initially reacted well to the news of the potential deal, although not everything is decided yet. Ftt price is back at $20 after a $14 drop while Bnb, the Binance coin, is down 10%. But in the evening a complete stop. The situation has deteriorated.