Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange, announced on Tuesday that he had signed a letter of intent to acquire rival FTX. But on Wednesday Binance announced it had decided not to pursue an acquisition of FTX after due diligence. Binance said it decided not to pursue a potential acquisition of FTX.com based on the results of its due diligence, as well as recent news reports about mishandling of client funds and an investigation by an alleged U.S. agency. In the beginning, Binance wanted to be able to support FTX’s customers and provide liquidity, but these issues were beyond Binance’s control or ability to help. Every time a major player in an industry fails, retail investors suffer. Over the past few years, Binance has seen the crypto ecosystem become more resilient, and Binance believes that, sooner or later, abnormal acts of misuse of user funds will be eliminated by the free market. As the regulatory framework evolves, the ecosystem will become stronger as the industry continues to move toward greater decentralization.
This article is reprinted from: https://www.solidot.org/story?sid=73320
This site is for inclusion only, and the copyright belongs to the original author.