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Tuesday, December 6, 2022

The crypto market crashes: Bitcoin sinks to $17,500, its lowest value in two years

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The worst case is that of FTT, the FTX exchange token, which lost 90% of its value after its founder announced the pause of withdrawals and the sale of the company to its main competitor, Binance, amid a “liquidity crisis” that sent the market into a panic.

The effect was also reflected in the total market value of cryptocurrencies, whose capitalization fell by almost 15%, going from $974 billion to about $820 billion.according to data from Tradingview.

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Cryptocurrency exchange Binance could soon acquire rival FTX. This was revealed on Twitter on Tuesday by Binance CEO Changpeng Zhao.

“This afternoon, FTX requested our help. There is a major liquidity crisis . To protect users, we sign an LOI [carta de intenci√≥n] non-binding, with the intention of fully acquiring FTX.com and helping to cover the liquidity crisis. We will carry out a DD [diligencia debida] completed in the next few days,” Zhao wrote. And, he said, “Binance has the discretion to withdraw from the deal at any time.”.

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Sam Bankman-Fried, CEO of FTX, admitted that his company was facing liquidity problems and said that the exchange came “to an agreement on a strategic transaction with Binance “.

“This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an amazing job in building the global crypto ecosystem and the creation of a freer economic world,” he tweeted.

FTX said it would not comment beyond his tweets for the foreseeable future. And Binance has not yet made an official statement on the matter.

For its part, FTT has a market cap of $3 billion compared to BNB’s $53 billion, according to data from CoinMarketCap. Both FTT and BNB are used as so-called trading tokens that provide users with discounts on their respective platforms.

Source: Ambito

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