FTX coin plunged as much as 75 per cent this evening after crypto exchange Binance struck a dramatic deal to snap up its beleaguered rival.
FTX, led by billionaire chief Sam Bankman-Fried, had been locked in a high-profile spat with Binance boss Changpeng Zhao in recent days, which had sparked an investor exodus from FTX.
But the argument took a turn as Binance announced it would buy its rival to save it from collapse.
“This afternoon, FTX asked for our help,” Zhao tweeted.
“There is a significant liquidity crunch. To protect users, we signed a non-binding letter of intent, intending to fully acquire [FTX] and help cover the liquidity crunch.”
He added that the firm will be conducting a full due diligence “in the coming days”.
The deal is set to bring together two of the industry’s biggest exchanges and could fundamentally reshape the sector.
However, the news sent shock waves across the wider crypto market.
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