The long -term effects of Binance FTX Fehde

The long -term effects of Binance FTX Fehde

The psychological tango between the minds of Binance and FTX could have longer -term effects that go beyond the price drop of the native tokens of the latter stock exchange. Industry participants interfered before news about a possible merger of the companies became known.

Binance founder Changpeng Zhao tweeted on Tuesday morning that the stock exchange had signed a non-binding declaration of intent to complete FTX.com.

The message comes after the balance of Alameda Research, reported on last Wednesday showed that about 40 % of the company's assets in height of 14.6 Billions of US dollars were attributed to the token that drives the trade to FTX.

alameda-CEO caroline ellison Claims on Sunday that the company is short of the bankruptcy, and tweeted that the leaked balance did not reproduce the full extent of Alameda's assets.

Zhao later tweeting

ftt was traded at $ 14.65 at 11:00 a.m., which corresponds to a decline of about 36 % in the last 24 hours. After the announcement of the supposedly upcoming buyout of Binance, the FTT rose suddenly and reached $ 18.55

SOL, which was $ 27.60 at 11:00 a.m. - about 15 % less than a day - half an hour later rose to $ 30.36.

Ryan Shea, a crypto economist at the financial broker Trakx, said that the situation between Binance and FTX had come at an unfortunate time for the broader cryptom market.

Bitcoin has dropped by about 72 % compared to his all -time high reached last November. It had recovered last week and had increased to over $ 21,000, but Bitcoin's price had fallen by 5.5 % in the past seven days at 11:00 a.m. Bitcoin also recovered after the declared intention of Binance to buy FTX.

"The beginning of recovery of crypto prices is endangered by the negative mood," said Shea in an email.

"And after the hot summer that we have experienced - not to mention the still disturbing macroeconomic background - the last thing the sector needs is more rumors about potentially doubtful or shameful behavior," he said.

Marius Ciubotariu, an important employee of the Hubble Protocol and Kamino Finance, based in Solana, said before the takeover news that Binance may see an opportunity to gain an advantage over a competitor who is preferred by the US supervisory authorities.

"Unfortunately, it may never be possible to say who is right because Binance solely has an enormous impact on the result of FTX through this measure," he added.

What is the longer -term effect? ​​

Blockworks Research Analyst Matthew Feibach also noticed before Zhaos Tweet on Tuesday morning that the so -called feud between Binance and FTX could benefit the room in the medium term.

"People can lose trust [Centralized Exchanges], learn something about self -storage and operate on the chain," he said. "An additional bonus, it could help to make ETH deflationary."

Other industry observers had said that the situation between Binance and FTX could extend the crypto winter.

"Uncertainty is bad for the markets," said Peter Eberle, Chief Investment Officer and President of Castle Funds. "This is another example of why people should keep their cryptos in their wallets. Use only stock exchanges-defi or traditionally-for the trade and then keep their tokens on a hardware wallet from stock exchanges. 'Not your keys, not your coins!"

Mark Fidelman, founder of smartblocks, said he believes that Zhaos blow could extend the industry down against FTX, but maybe only slightly. But before the upcoming acquisition messages, he said that he would expect the leaders of Binance and FTX to make amends.

Shea said that the schedule for cryptor regulation could also be influenced. Some said that the bidet government presented in September lacked details because the president demanded further investigations into a potential digital dollar.

"If the latest episode serves to speed up crypto regulation, then it could only be the catalyst who makes crypto accessible to a wider audience, and that's a good thing," said Shea.

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The contribution The Long-Term Impact of the Binance Ftx Feud is not a financial advice.