Based on the joint statements on Twitter this week from Binance CEO Changpeng “CZ” Zhao and FTX CEO Sam “SBF” Bankman-Fried, it seems clear that FTX has serious solvency problems — so dire that few in the market are willing to save it. As a result, FTX is turning to CZ as a prospective buyer.
After CZ exposed FTX’s problems earlier in the week by announcing his plan to dump $500 million of its FTX Token (FTT) on the market, the companies said on Nov. 8 that they had entered into a nonbinding agreement for Binance to purchase FTX. It’s a tentative deal that means Binance can withdraw at any time without facing any consequences, and I personally believe it is very unlikely the acquisition will ultimately be finalized.
Gracy Chen is the managing director of Bitget, a cryptocurrency exchange. She was previously an executive at XRSpace, a virtual reality technology company, and also worked for Phoenix Television, one of the largest media conglomerates in China, as an anchor and producer for its technology and finance channel. She graduated from the National University of Singapore and is pursuing an MBA at the Massachusetts Institute of Technology.