Crypto Flipsider News – FTX Update; Authorities Open Probe; Sequoia Zeros FTX; $900m SOL Unlocked; DeFi TVL Plunges
Read in the Digest:
- Binance pulls out of FTX deal, Justin Sun announces potential partnership
- Authorities open probes into FTX’s collapse, crypto execs call for clearer guidelines
- Venture capitalist firm, Sequoia, marks down its entire FTX investment to $0
- ecosystem shakes SOL worth $900 million, prepares to be unlocked
- DeFi TVL feels the brunt of FTX’s liquidity crunch, TVL falls to 20-month low
Binance pulls out of FTX deal, Justin Sun announces potential partnership
Sam Bankman-Fried’s crypto exchange, FTX, fell into one of the biggest liquidity crunches after Binance’s CEO, Changpeng Zhao announced that his company was going to sell all its FTX Tokens (FTT), worth $529 million.
Binance proceeded to propose a deal to acquire FTX after the exchange imploded. However, on Wednesday, CZ announced that Binance will no longer follow through with the deal as FTX’s issues were beyond their ability to help.
However, just hours after the Binance boss called off the deal, it was reported that Justin Sun, the founder of the Tron crypto, was in talks with Bankman-Fried. The news was later confirmed by Sun’s tweet.
Sun took to Twitter to announce that he and the team have “been working around the clock to avoid further deterioration.” Sun also tweeted they were putting together a solution, which has been liked and retweeted by SBF.
Flipsider:
- Top crypto exchanges are committing to a proof of reserve system to prevent the future reoccurrence of a liquidity crunch.
Why You Should Care
Sun looks to end the FTX crisis as the ongoing liquidity crunch is harmful to the industry’s development and investors alike.
Authorities open probes into FTX’s collapse, crypto execs call for clearer guidelines
FTX’s implosion has drawn the attention of U.S. regulators, who have reportedly opened probes to determine whether the beleaguered crypto-exchange…
