Autor Cointelegraph By Ana Paula Pereira

“Who needs Netflix when you are in crypto?”, commented a user on Twitter as the crypto industry attempts to digest the acquisition of cryptocurrency exchange FTX by its rival Binance. The deal, disclosed on Nov 8., has been compared with a “chess move” by some, insinuating that Binance’s strategy intentionally led to the deal.Users on Twitter claimed that “CZ just executed the most gangster play we’ve seen in Crypto, ever, period,” referencing the series of tweets from Binance CEO Changpeng Zhao that triggered the acquistion. CZ just executed the most gangster play we’ve seen in Crypto, ever, period. The BALLS on this man. Truly — bravo.Also bravo to Sam to choose the correct option that protects customer assets, swallow his pride, and not burn everything down in an unnecessary fight.WHAT A SHOW!— Autism Capital (@AutismCapital) November 8, 2022The community also compared the move with Elon’s Musk Twitter acquisition:@SBF_FTX Another slow poison implemented by @cz_binance like @elonmusk used against Twitter to acquire it.MonopolyAnd we hate it.#FTX is the best exchange.— CSTart.hft (@cosmoaker) November 8, 2022

In a brief recap, in a Nov. 6 tweet, Zhao announced the decision to liquidate Binance’s position on FTX token (FTT) was made after “recent revelations that have came to light,” citing “post-exit risk management” reasons. FTX founder and CEO Sam Bankman-Fried, or SBF, took to Twitter on Nov. 7 to claim that a competitor was trying to go after the cryptocurrency exchange with false rumors. FTX “assets are fine,” he said, stating that it had enough funds to cover all client holdings and does not invest client assets, even in treasuries. In the same thread, SBF also called for collaboration with the rival exchange Binance. As reported by Cointelegraph, the series of tweets triggered a sell-off of FTX Token that broke below the pattern’s support line near $22.50, accompanied by a volume spike. The sell-off continued below the support line and the token is down over 57% in the past 24 hours, negotiated at $9.70 at press time. In a message to FTX’s staff this morning, SBF said that $6 billion of net had been withdrawn from the platform in the past 72 hours, leading the exchange to “effectively pause,” adding that the situation would be resolved in “the near future,” according to reports. On Nov. 8, both SBF and CZ announced the acquisition citing a “liquidity crunch”, implying that Binance’s equity liquidation led to FTX’s insolvency. FTX’s CEO chose to seek a “bailout from the competitor that triggered the bank run in the first place”, wrote a user on Twitter about the legal options the exchange had under the liquidity crisis. 1/ Ok so just processing this out loud because I am pretty mindblown that FTX chose – of all options, a buyout from Binance. These were the options open to SBF: (a) seek emergency debt financing, (b) seek new money investment, (c) liquidate assets and/or (d) buy time…— wassielawyer (@wassielawyer) November 8, 2022

The deal still depends on regulatory approval, and it is unclear whether antitrust concerns would arise from the deal.Binance signed a non-binding letter of intention (LOI) declaring its intention to buy FTX. Zhao added that Binance was, “assessing the situation in real time” and had the ability “to pull out from the deal at any time.”

FTX founder and CEO Sam Bankman-Fried took to Twitter again on Nov. 7 to claim that “a competitor is trying to go after the cryptocurrency exchange with false rumors”, while also calling for collaboration with the rival exchange Binance. The comments follow a statement from Binance CEO Changpeng “CZ” Zhao concerning the liquidation of the exchange’s position in FTX token (FTT) as “post-exit risk management” over the weekend.1) A competitor is trying to go after us with false rumors.FTX is fine. Assets are fine.Details:— SBF (@SBF_FTX) November 7, 2022FTX “assets are fine”, according to SBF, who also alleged that the exchange has enough funds to cover all clients holdings and does not invest client assets, even in treasuries. He also said that:”[FTX] It’s heavily regulated, even when that slows us down. We have GAAP audits, with > $1b excess cash. We have a long history of safeguarding client assets, and that remains true today.”Binance co-founder & Chief Customer Service Officer Yi He clarified that the sell-off of FTT had nothing to do with the alleged war between the two exchanges.3）The point we’d like to stress is that the decision to hold or sell a token depends on one’s own risk appetite and judgement. Our decision to sell FTT is a pure investment-related exit decision, which has nothing to do with “a war” and we have no intention to engage in drama https://t.co/Jl5yQRcouv— Yi He (@heyibinance) November 7, 2022

Earlier today, FTX’s profile on Twitter also addressed user complaints surrounding withdrawal delays, assuring users that everything is running smoothly with the matching engine, although node throughput remains limited for Bitcoin withdrawals at time of publication.On Reddit, some users expressed alarm toward the developments, likening the situation to Celsius halting withdrawals and misleading its users prior to the platform’s collapse.In a Nov. 6 tweet, Zhao said the decision to liquidate the assets was made after “recent revelations that have came to light,” in reference to Terra’s Luna Classic (LUNC) crash and its impact on the crypto market. He also commented on the FTX founder’s recent actions. In a tweet from CZ, he added:“We won’t support people who lobby against other industry players behind their backs.”On-chain analysis shows that an unknown wallet transferred approximately 23 million FTT to Binance — worth around $584 million USD — in the early hours of Nov. 7. According to Zhao, the transfer wa part of the exchange’s decision to offload tokens.Related: FTX addresses user withdrawal complaints amid major token movementThe series of tweets triggered a selloff in the FTX Token that broke below the pattern’s support line near $22.50, accompanied by a volume spike. The FTX exchange token’s selloff continued on Nov. 7 below the support line, raising risks of a bearish continuation phase in the coming months, as reported by Cointelegraph. Binance’s decision was influenced by allegations that the FTX-founded crypto hedge fund Alameda Research could go insolvent due to its exposure to illiquid altcoins, including FTT. As of June 30, Alameda Research reported a balance sheet of $14.66 billion with FTT the largest holding company with $5.8 billion, making up 88% of its net equity.