The two largest offshore cryptocurrency exchanges are merging, after a week of public squabbling between Binance’s chief executive, Changpeng Zhao, and FTX’s boss, Sam Bankman-Fried, triggered a bank run at the latter’s exchange and an embarrassing forced sale on Tuesday.
Binance, the world’s largest cryptocurrency exchange by trading volumes, will acquire FTX in a deal worth $150 million. The acquisition is set to make Binance even more dominant in the crypto market, as FTX currently ranks sixth in terms of total trading volume across all its markets.
Zhao and Bankman-Fried have agreed to become co-CEOs in the merged company, with Bankman-Fried also taking on the role of chief strategy officer.
The merger comes after a tumultuous week for FTX’s banking relationships. On Monday, FTX revealed it had lost its banking partner, Prime Trust, following a tweet by Zhao
criticizing Bankman-Fried’s business practices. This caused a run on the exchange, as users rushed to withdraw their funds before potentially being locked out.
In response, FTX was forced to sell $50 million worth of its tokens at a steep discount on Tuesday in order to raise enough liquidity for withdrawals. It later regained access to its bank accounts, but the damage had already been done.
The merger with Binance will provide FTX with much-needed stability and access to a larger pool of resources. For Binance, it brings in FTX’s innovative derivatives products and talented team, solidifying its position as the top player in the crypto exchange market.
The deal is expected to close within the next two months, pending regulatory approvals.
This is not Binance’s first major acquisition – in 2019, it bought Indian cryptocurrency exchange WazirX and crypto margin trading platform JEX. In 2020, it also launched its own decentralized exchange, Binance DEX.
But on Sunday, CZ posted a short thread explaining that, “due to recent revelations that have come to light”, the company would be selling roughly $2bn-worth of FTT crypto tokens that FTX had created years before and issued to investors.
While it remains unclear exactly what those revelations were, the move to sell off the tokens means that FTX no longer has control over them – a potentially worrying sign for its users. But with the merger with Binance now announced, FTX’s future looks much more secure.
The combined company will undoubtedly be one to watch, as it continues to shape the rapidly evolving world of cryptocurrency trading.
Why BitYard is safer than Binance and FTX
BitYard does have several features that may contribute to a higher level of safety for users, such as mandatory Know Your Customer (KYC) verification for all users, 24/7 customer support, and various security measures such as multi-factor authentication.
BitYard also has a registration process that is more strict than that of Binance and FTX, as it requires not only KYC verification but also proof of trading experience.
This could potentially result in a lower risk of fraudulent activity on the platform. It also has a two-picture verification one of the ID picture and another one a picture of your own holding your ID this also could lead to a lower risk of fraudulent activity.
Overall, while BitYard have certain features that contribute to a higher level of safety, it is ultimately up to the individual user to conduct their own research and choose a platform that they feel comfortable with.
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