According to a source familiar with the matter, the acquisition of FTX by Binance could ultimately be canceled altogether. Indeed, following the study of the accounts of the platform relating to the due diligence process, Binance would lean unfavorably for a takeover of FTX. The 2 entities refused to communicate on this subject.
What if Binance canceled the takeover of FTX?
This is a decision that could have irreversible consequences for the ecosystem: according to a source quoted by our colleagues from CoinDesk, Binance could end up purely and simply canceling its acquisition of FTX.
“The exchange has very little chance of going through with its acquisition project”indicated the source close to the potential takeover.
According to the elements reported, Binance could finally decide to cancel everything following its study of the FTX exchange accounts as part of its process of due diligence. Indeed, this legal process allows an entity to study the state of a company’s accounts before a potential takeover.
Still according to the quoted source, after half a day of reviewing said accounts, Binance would be very unfavorable to a takeover of FTX.
The price of Bitcoin (BTC) fell by 5% after the publication of this probable cancellation. The FTT, the token of the FTX platform, seems to have “stabilized” around 4 dollars after a sharp drop from 20 dollars. The latter has thus lost 80% of its value over the last 24 hours..
Bitcoin price
A decision which would prove understandable, in the perspective where the study of the accounts carried out by Binance would echo the report published by CoinDesk on November 2 mentioning a potential insolvency of Alameda Research.
According to this report, Alameda Research held more than 10 billion dollars in the form of various cryptocurrenciesin particular the FTT or the SOL of the Solana blockchain (ecosystem in which FTX has heavily invested).
Beyond the purely financial aspect of the thing, the legal perspective could also be one of the causes of a potential cancellation of the acquisition, the finality of which will have considerable repercussions whatever they are.
Indeed, whether vis-à-vis the United States antitrust law or the laws relating to competition, the absorption of FTX by Binance is very far from trivial: the 2 giants alone hold more than 80% of the cryptocurrency market.
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Sources: CoinDesk, TradingView
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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