Riding The Wave News Summary 93
Crypto Investors Grapple With the Collapse of a Giant, Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source, & more
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Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source
FTX-Binance standoff highlights the need for clear rules — Sen. Lummis
Tether, Circle and Coinbase deny having exposure to FTX and Alameda
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Crypto Investors Grapple With the Collapse of a Giant
Devastation in the crypto market continued on Wednesday, after the giant crypto exchange Binance announced a bombshell deal to buy its embattled rival, FTX. (The deal excludes FTX’s American operations.) The entire market’s capitalization now stands at $900 billion, down from $3 trillion just one year ago, while major cryptocurrencies were down by double-digit percentages. The damage is largely contained within crypto; both the S&P 500 and the Nasdaq closed up yesterday.
But investors fear that Binance won’t go through with the rescue plan, and that more pain awaits after their industry’s biggest Lehman-esque moment to date.
Traders withdrew over $1.2 billion from FTX on Monday alone, according to the research firm Nansen. By Tuesday, FTX had stopped processing withdrawals; its chief executive, Sam Bankman-Fried, who was reportedly casting about for a financial lifeline from billionaires, finally turned to Binance for salvation.
The crypto world fears other shoes will drop. Investors worry that CZ may yet pull out of his rescue deal: He noted on Tuesday that the transaction was nonbinding and subject to due diligence. Meanwhile, tokens associated with FTX, including Solana, have continued to plunge in value.
Crypto is dropping across the board due to the black swan event that is FTX being insolvent.
Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source
Cryptocurrency exchange giant Binance is highly unlikely to go through with its proposed acquisition of struggling rival FTX after less than a day of reviewing the company, according to a person familiar with the matter.
Binance’s non-binding letter of intent for the takeover – announced Tuesday as FTX’s financial position appeared to be spiraling out of control – hinged on Binance performing due diligence. Roughly half a day into that process of reviewing FTX’s internal data and loan commitments has led Binance to strongly lean against completing the transaction, the person said.
Binance declined to comment on the current status of the proposed deal. FTX also declined to comment.
If Binance doesn’t cover FTX by buying it, panic might become even more intense across the markets as many people have all of the there funds in FTX. It was one of the top 3 crypto exchanges in the world prior to this event.
FTX-Binance standoff highlights the need for clear rules — Sen. Lummis
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