If Binance makes such a move as to pull out of the unbinding agreement, it will be such a huge development in the collapse of the once second-largest crypto exchange FTX. Sam Bankman-Fried’s wealth has already dropped by about 93% since the FTX debacle started.
Binance’s nonbinding letter of intent for FTX takeover
The nonbinding letter of intent is purely hinged on Binance’s due diligence. It is now about a day since Binance offered the intent and Binance has already started reviewing FTX’s internal data and loan commitments, which have shown Binance is strongly leaning towards backing out of the agreement.
There is however no official communication from either Binance or FTX on what to expect in the coming days. The decision that comes out of the process may be as sudden as the decision by FTX’s founder to agree to be bought by his competitor.
The market is already responding to the FTX news and so far the overall crypto market cap has dropped below $1 trillion days after it regained the level.
FTX had sought help from other popular exchanges including OKX and Coinbase to seek help as concerns about its financial stability. This was after Binance CEO Changpeng Zhao said he would sell his holdings of the FTT cryptocurrency issued by FTX in the midst of a storm that had been brewing around FTX Sister Company Alameda Research’s balance sheet.