Binance backs out of FTX acquisition

11 Nov 2022 , 08:18 AM

After Binance decided against buying out its arch-rival FTX Trading, citing financial and investigation worries, the cryptocurrency market remained unstable.

Following due diligence, Binance has cancelled its letter of intent to acquire the competing cryptocurrency exchange, FTX. In addition, there are numerous reports that FTX handled consumer money improperly.

Earlier, after witnessing the digital equivalent of a bank run, FTX had decided to sell itself to Binance. Customers left the exchange when they started to wonder if FTX had enough capital.

The crypto market has lost more than $180 billion as a result of the FTX collapse, and all types of digital assets are currently facing intense selling pressure.

Following this, the cryptocurrency market had another round of a sharp sell-off, further hurting the already damaged crypto industry. On Thursday, the majority of the crypto tokens were in the red.

The overall value of the cryptocurrency markets decreased by 5% and fell below $850 billion. However, cryptocurrency trading volumes held steady at over $190 billion during the past 24 hours, despite a little decline.

Bitcoin fell below $16,000 before rising to $16,700 at 15.00 IST. Ethereum again broke through the $1,100 barrier before circling around the $1,200 level.

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