The crypto world turned upside down on Tuesday when the CEO of Binance, Changpeng Zhao (CZ), announced his company. Signed a letter of intent to rival FTX. The settlement comes after CZ publicly feuded with FTX CEO Sam Bankman-Fried (SBF) over the weekend, marking the terrifying downfall of a company many consider to be the future of cryptocurrenciesand make Binance the undisputed king of the industry.
Rumors about the potential boom of FTX have been circulating for 48 hours with some worried that the company would share the infamous fate of Celsius and Voyager — the major crypto firms had boomed expected in the spring and apparently attacked client funds in an attempt to desperate to maintain solvent. It seems unlikely that will happen as SBF has stated that the deal will protect customer funds:
These developments appear to reassure broader crypto markets as the prices of Bitcoin and Ethereum, which have skyrocketed amid rumors of a possible FTX demise, support the news. Binance deal. Meanwhile, Binance’s native token BNB has skyrocketed nearly 20% with its market capitalization now exceeding $60 billion.
The reactions on the so-called Crypto Twitter – where the industry shares all manner of news and gossip – were in the form of relief, but also pleased and admired the audacity of the Binance CEO:
Binance first emerged amid the 2017 bull run, quickly eclipsing the once-crypto king Coinbase to become the largest cryptocurrency company in the world. In the early days of Binance, the company seemed to have eliminated floating regulators, threading between countries to avoid costly compliance obligations. More recently, Binance has made a concerted effort to do good with regulators, hiring former senior IRS and Interpol agents, and committing to comply with rules designed to prevent money laundering and other engaging activities.
This is a breaking news story. More details will be added shortly.
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.