2 years ago
Solana and FTX token saw a crisp rebound aft headlines announced that Binance would get FTX owed to liquidity issues, but volition the upside last?
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FTX Token (FTT) and Solana (SOL) endured a pugnacious play of trading which saw altcoins instrumentality double-digit losses successful the 15% to 30% range, but the tide turned arsenic quality broke that Binance could beryllium successful the process of acquiring FTX.
On Nov. 8, FTX CEO Sam Bankman-Fried archetypal took to Twitter to denote a liquidity sharing concern with Binance exchange. Changpeng Zhao “CZ”, the CEO of Binance agreed to measurement successful and supply liquidity to what was opening to look similar a slope run. Bankman-Fried billed the improvement arsenic user-focused which benefits the full industry.
1) Hey all: I person a fewer announcements to make.
Things person travel afloat circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we person travel to an statement connected a strategical transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
CZ besides confirmed that Binance would measurement successful to assistance FTX with its liquidity crunch and the CEO tweeted a missive of intent to acquisition FTX.
This afternoon, FTX asked for our help. There is simply a important liquidity crunch. To support users, we signed a non-binding LOI, intending to afloat get https://t.co/BGtFlCmLXB and assistance screen the liquidity crunch. We volition beryllium conducting a afloat DD successful the coming days.
— CZ Binance (@cz_binance) November 8, 2022Since Nov. 7, FTX had been experiencing liquidity issues aft quality broke connected Alameda Research’s unusual looking books. As FTX was warring disconnected withdrawals from their exchange, adjacent freezing withdrawals astatine 1 point, Binance announced it would merchantability the full FTT allocation they possessed.
FTT 4 hr chart. Source: TradingViewDuring the disagreement betwixt exchanges, FTT terms dropped 38.7% from $25.71 to $15.76 and SOL terms fell 31.23% to a 5-month debased astatine $25. After quality of a imaginable statement betwixt FTX and Binance, FTT terms bounced much than 20%, but inactive trades good beneath what had been long-time enactment astatine $22.
SOL 4 hr chart. Source: TradingViewBNB terms had besides suffered implicit the past fewer days, dropping by 14%, but the quality of Binance agreeing to get FTX was followed by the speech token staging a 25% rally wrong the hour.
BNB terms index. Source: CointelegraphRelated: Bitcoin terms swings implicit $20K arsenic Binance helps FTX 'liquidity crunch'
While the communicative is processing and galore unknown variables remain, the broader crypto marketplace has reacted positively to the news. Bitcoin (BTC) concisely rallied implicit $20,000 earlier slipping backmost successful the $19,800 range, portion Ether (ETH) terms continues to commercialized supra $1,500.
The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.
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