Binance is finally pulling the plug on the possible acquisition of FTX, after it was shocked by the financial figures that it was allowed to see. In response, the FTX Token price has gone into free fall and appears to be heading for zero from here. There is little to no chance that the FTX exchange token will ever represent anything of value again.
Hole is too big for Binance
Binance initially hoped to be able to step in to save the day, but indicates that the gap is too big for them to offer help. The stock exchange platform indicates that it is disappointed with the situation that has arisen. “Every time a major player in the industry goes down, the retail investors are in the loop,” Binance said. Which is also not entirely fair from Binance, because in the end they were the ones who started the entire liquidation wave.
Of course there was something wrong in the books at FTX at all, which makes the whole situation difficult to justify. But Binance was ultimately the one that caused the digital bank run. If Changpeng Zhao hadn’t shouted that Binance wanted to liquidate all of its FTX Tokens, it probably wouldn’t have happened. At least not in the short term and FTX may have had time to close the gap.