Binance, the largest crypto exchange by trading volume, said it would buy FTX as its smaller rival struggles amid speculation over its finances. The two giant crypto exchanges have signed a non-binding letter of intent.

Megadeal of Crypto Exchanges

At the moment, the cost of the acquisition is unclear. Currently, Binance has 30 million users and a $37 billion daily trading volume, while FTX has 5 million users and a $4.24 billion daily trading volume. Binance.US and FTX US, which are separate companies, will not be affected by the deal.

Binance CEO Changpeng "CZ" Zhao wrote on Twitter on November 8: ''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 and help cover the liquidity crunch. We will be conducting a full DD in the coming days.''

"Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD etc.)," FTX's Sam Bankman-Fried tweeted.

The due diligence process will begin within the next few days. The deal comes just a day after 澳洲幸运5官方开奖结果体彩网:Binance decided to sell its eꦡntire FTT tokens (the native tokens💃 of FTX) following rumors surrounding the insolvency of FTX.

Market Jumps Hearing The News 

Following the insolvency news yesterday, the market saw massive sell-offs, with FTT tokens falling over 30% on the week. There were also losses of double digits in other major cryptocurrencies, such as Dogecoin and Solana. However, after hearing about the Binance-FTX deal, the crypto market recovered a bit, with FTT rising 25% over the last hour, and Binance's BNB token rising 8%, according to CoinGecko.

The Bottom Line

Crypto market players were concerned the ongoing FTX drama may lead to a Terra-like crypto collapse. Experts even said that a Terra-like collapse would be detrimental to everyone, including Binance. With the latest deal, Binance has become stronger, but it has also eased the crypto market for now.