Farewell SBFweet prince
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Peace in our time!
1) Hey all: I have a few announcements to make.
— SBF (@SBF_FTX) November 8, 2022
Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
The cold war gripping cryptoland has suddenly turned very hot. Binance has stepped in to non-bindingly rescue rival cryptocurrency superpower FTX from a liquidity crunch it was widely considered to have helped create.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 BNB (@cz_binance) November 8, 2022
It’s a reverse ferret from SBF, who was talking on Monday about how “a competitor is trying to go after us with false rumors”. All friends now though. Apparently.
5) I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.
— SBF (@SBF_FTX) November 8, 2022
The trigger to surrender was FTX’s native token FTT slumping to new lows. TheBlock reported around 9am EST that FTX hadn’t done any on-chain withdrawals on Ethereum, Solana or Tron blockchains since 6:37am EST:
Crypto exchange FTX, which is currently fighting a battle with rival Binance, seems to have stopped processing clients’ requests for withdrawals, according to on-chain data.
The last outgoing transaction from FTX on the Ethereum blockchain took place at 6:37 a.m. ET, more than two hours ago, data from Etherscan show. It’s a similar story on the Tron and Solana blockchains as well, on-chain data show.
Skirmishes had begun over the weekend, when Binance said it would dump its FTT tokens in response to “recent revelations”. This appeared to refer to claims about the fragility of Alameda Research, the FTX-linked trading firm, due to its reliance to FTT and other third-tier tokens.
Caroline Ellison, chief executive of Alameda, had suggested on Twitter that it could buy Binance’s FTT holdings at $22 per coin. Binance’s Changpeng “CZ” Zhao publicly rejected the proposal by making passing reference to Luna, the algo-stablecoin that collapsed spectacularly in June.
I didn't say that. It was a question, not a commitment. I think we will stay in the free market.
— CZ 🔶 BNB (@cz_binance) November 7, 2022
We still hold LUNA (now LUNC) today. 😂
FTX's only option left was direct intervention to support its sort-of currency and discourage shouts of fire within its very crowded theatre. Support never arrived, however, and FTT slumped below $15.
The full story’s over on the FT mainsite.
SBF and FTX’s official Twitter accounts were uncharacteristically quiet through the drama. But CZ did find time to like this tweet.
Only $BNB is surviving the sea of red today.
— Miles Deutscher (@milesdeutscher) November 8, 2022
CZ is showing everyone who’s boss. pic.twitter.com/P84LGWV28u
Note: this post has been substantially revised post publication in an attempt to keep pace with breaking news
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