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Binance Backs OUT from FTX Purchase: Renewed Crypto Market CRASH?

In this article, we go over the details of Binance canceling its deal to buy FTX. We’ll also analyze the top 10 cryptos.

Breaking News: Binance backs out from its decision to acquire FTX. This news took another heavy toll on the crypto market. In the past 24 hours, the crypto market lost on average around 14%. Will the crypto market continue to crash further in the coming few days? In this article, we go over the details of Binance canceling its deal to buy FTX. We’ll also analyze the top 10 cryptos and see how much they lost in the past 24 hours.

Binance backs out from the FTX acquisition

Before we go into how Binance backed out of the deal, we must understand what has happened.

Why is FTX in bad shape?

  • FTX is the third-largest crypto exchange
  • The company engaged in buying broke crypto companies and was over-leveraged in their crypto holdings
  • FTX did not back its customers’ deposits properly
  • Binance engaged in a selloff of FTX’s tokens FTT in the open market

On the other hand, the CEO of FTX was claiming just 2 days before announcing that he went bankrupt that FTX is doing just fine. He also hinted at a competitor trying to smear their name.

FTX Announces its bankruptcy

The CEO if FTX announced in a tweet that they reached a “critical phase” and that they turned to their “good friends” over at Binance. The latter offered a helping hand in the beginning and announced that they were looking into acquiring FTX.

CZ, the CEO of Binance clearly stated that they simply signed an LOI (letter of intent), which is non-binding. This means that they can walk out of the deal at any time. Well, this is what happened after just 1 day.

Binance Backs out from the FTX Acquisition

The crypto world was shocked to hear the news that Binance walks out of the deal. The reason behind this rational was that the due diligence that Binance did on FTX revealed that the company mishandled its customers’ deposits. This is a big red flag not only for FTX, but for most other crypto exchanges. This phenomenon can happen to anyone now, and the regulators have their eyes wide open.

The Crypto Market CRASHED on this News

After the announcement of the cancellation of the acquisition, the crypto market crashed further. On average, most cryptos lost around 14% in the past 24 hours.

  1. Bitcoin (BTC): $15,990 (-13.96 %)
  2. Ethereum (ETH): $1,124 (-15.34 %)
  3. Tether (USDT): $1 (0 %)
  4. USD Coin (USDC): $1 (0 %)
  5. Binance Coin(BNB): $269 (-15.66 %)
  6. Binance USD (BUSD): $1 (0 %)
  7. Ripple (XRP): $0.33 (-17.53 %)
  8. Cardano (ADA): $0.31 (-13.81 %)
  9. Dogecoin (DOGE): $0.073 (-15.08 %)
  10. Polygon (MATIC): $0.80 (-22.08 %)

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Source: Altcoin

Altcoins

Binance re-enters the Japanese market with purchase of SEBC exchange

Crypto exchange Binance has reentered the Japanese market after acquiring a 100% stake in Sakura Exchange BitCoin (SEBC), a regulated cryptocurrency exchange in Japan. KEY TAKEAWAYS SEBC is a Japan Financial Services Agency (JFSA) regulated entity. By acquiring SEBC, Binance aims to offer Japanese-regulated services through the exchange. At the time of the Binance acquisition, […]

The post Binance re-enters the Japanese market with purchase of SEBC exchange appeared first on CoinJournal.

Crypto exchange Binance has reentered the Japanese market after acquiring a 100% stake in Sakura Exchange BitCoin (SEBC), a regulated cryptocurrency exchange in Japan.

KEY TAKEAWAYS

  • SEBC is a Japan Financial Services Agency (JFSA) regulated entity.
  • By acquiring SEBC, Binance aims to offer Japanese-regulated services through the exchange.
  • At the time of the Binance acquisition, the Tokyo-based exchange supported 11 trading pairs; mainly cryptocurrency-Japanese Yuan pairs.

Despite the tense situation in the crypto market following the collapse of FTX which seems to be taking other crypto entities like BlockFi down with it, Binance seems to be spreading its wing further and further. The SEBC acquisition comes weeks after Binance pulled out of its planned FTX rescue plan citing issues with FTX’s financial book.

Expanding into Japan

In the past few years, Binance has been expanding its business across various countries as it stamps its authority within the crypto space. So far, the crypto exchange has secured regulatory approvals in France, Italy, Spain, Bahrain, Abu Dhabi, Dubai, New Zealand, Kazakhstan, Poland, Lithuania, and Cyprus.

The acquisition of Sakura Exchange BitCoin marks the exchange’s first entry into East Asia. Most importantly, SEBC is already a regulated entity which means Binance will be able to offer regulated services in Japan, which is a major economy in East Asia.

In a press release announcing the acquisition of the Japanese exchange, the general manager of Binance Japan, Takeshi Chino, said:

“The Japanese market will play a key role in the future of cryptocurrency adoption. As one of the world’s leading economies with a highly-developed tech ecosystem, it’s already poised for strong blockchain uptake. We will actively work with regulators to develop our combined exchange in a compliant way for local users. We are eager to help Japan take a leading role in crypto.” 

At the time of the acquisition, SEBC offered customer consultation services and crypto brokerage services supporting 11 crypto-Japanese Yuan trading pairs. The trading pairs include BTC/JPY, ETH/JPY, BCH/JPY, XRP/JPY, LTC/JPY, ETC/JPY, XEM/JPY, MONA/JPY, ADA/JPY, XYM/JPY, and COT/JPY.

The post Binance re-enters the Japanese market with purchase of SEBC exchange appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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