Crypto Markets Wobble As Binance Withdraws From FTX’s Bailout

Gloominess hits the cryptocurrency market on Thursday as news of Binance backing out of FTX’s buyout airs. Bitcoin traded at a record low during the wee hours of the day. This came about because investors were worried that the seemingly Terra-like implosion of FTX could switch the market into selling mode. 

FTX Warns Against Deposits And Halts Withdrawals

On Wednesday, the giant cryptocurrency exchange, Binance, called off its FTX buyout. Afterward, Sam Bankman-Fried, FTX’s founder, claimed to be evaluating the company’s salvation alternatives. However, as every available door appears to be closing up, the market delved into a frenzy. 

FTX posted a notification on its website saying it cannot process withdrawals. In addition, users should refrain from depositing funds into the exchange. Currently, the firm is trying to size up unknown losses and measure the beat on the market outlook.

It has replaced Terra as the largest crash company, with investors at the receiving end. FTT, FTX’s native token, lost 90% this week and is currently steadying at $2. It initially dropped to $1.50, marking the range as a record low. 

For the first time since late 2020, Bitcoin dived below $16k. By press time, it was trading at $16,415. 

Binance Declines To Continue With The FTX Offer

Binance abandoned its acquisition of FTX on due diligence. Two days ago, the CEO of Binance, Changpeng Zhao, tweeted that it is liquidating all of its FTT reserves in light of a situation with FTX. Subsequently, Binance decided to buy FTX instead but soon pulled back from its decision. 

OKX mentioned Sam Bankman-Fried coming to it this week with an offer. Sam claimed that FTX must cover a $7 billion liability ASAP. Lennix Lei, OKX’s director, told Reuters that even Elon Musk could not close a $7 billion deal having only negotiated a few hours. 

Lennix added that it is too risky for OKX to take. Besides, as long as FTX remains on the ledge, the market with continue in fear. Wall Street Journal provided information from Sam Bankman-Fried that FTX requires $8 billion to authorize withdrawals of users’ assets. 

However, FTX has not publicly addressed its ongoing situation or the news floating around. FTX was one of the leading companies in the industry that provided support to limping firms. 

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