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The crypto news cycle has shared a rollercoaster of updates over the past 48 hours. In case you missed it, here’s the TL:DR on the Binance & FTX headlines and the impact it’s having on the market.
On Tuesday 8 November, global cryptocurrency exchange Binance announced their non-binding agreement to buy FTX non-US business. The acquisition is believed to be linked, at least in part, to FTX getting into trouble after it used its own FTT token to swell its assets against its liabilities. This is like a company using its own equity as collateral against a loan. In short, it isn’t safe because the equity (or token) is linked to the health of the business.
However, on Thursday 10 November (just two days after the announcement) there are confirmed reports that Binance has walked away from their planned take-over of FTX.
A Binance spokesperson told media that “as a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”
These reports have certainly caused some alarm amongst crypto investors & traders, which is reflected across the market.
At Swyftx, we have no exposure of any kind to FTX and our customers hold very small amounts of FTT. Protecting our customers is our highest priority, which is why we are closely monitoring FTT’s liquidity and will take appropriate action if necessary.
Yes, you can continue to withdraw FTT from your Swyftx account. If there are any changes to this in the future, impacted customers will be contacted directly via email.
While there are currently no plans to delist or suspend FTT across our platform, we consistently review the quality of the assets available for trade on our platform. If any action is to be taken in the future, impacted customers will be contacted directly via email with as much prior notice as possible.