25 February, 2024

Justin Sun Huobi Working on A Solution With FTX After Binance’s Pullout

1 year ago

22 Nov, 2023

Justin Sun, the creator of the Tron blockchain platform and Grenada’s ambassador to the World Trade Organization, who also recently acquired Huobi, stated on Twitter that he was putting together a solution together with FTX after Binance announced that it would no longer be acquiring FTX as a cryptocurrency exchange. Sam Bankman-Fried, the founder of FTX, retweeted Justin Sun’s post.

Sun said: “The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.”

He went on to say that his team has been working nonstop to prevent the issue from becoming any worse, and that he is certain that they will be able to handle the crisis as long as they take a holistic strategy in conjunction with our other partners.

The cryptocurrency industry was taken aback on Tuesday when the creator of FTX, Bankman-Fried, disclosed that the exchange was experiencing liquidity problems, just a few days after stating that the exchange was operating normally.

As a result of the significant liquidity gap, Bankman-Fried notified investors that his cryptocurrency exchange was facing a deficit of anywhere from $4 billion to $8 billion and required $4 billion to be viable.

A statement made by Bankman-Fried at the time indicated that he had reached an agreement to carry out a deal with Changpeng Zhao, the creator and CEO of Binance. CZ explained in a subsequent statement that the document in question was a nonbinding letter of intent to buy FTX.

Binance withdrew from the transaction earlier on Wednesday, stating that after reviewing FTX’s books, it became clear that the difficulties are beyond our capacity to regulate or assist in any manner.