The crypto world turned upside on Tuesday because the CEO of Binance, Changpeng Zhao (CZ), introduced his firm has signed a letter of intent to rival FTX. The deal, which comes after CZ feuded overtly with FTX’s CEO Sam Bankman-Fried (SBF) over the weekend, marks a shock collapse of an organization that many seen as the way forward for crypto, and leaves Binance because the undisputed king of the trade.
Rumors of FTX’s potential implosion had been circulating for 48 hours with some fretting that the corporate would share the notorious destiny of Celsius and Voyager—giant crypto companies that blew up expectedly within the spring and appeared to raid buyer funds in a determined bid to remain solvent. It seems that gained’t be the case as SBF said that the deal will safeguard buyer funds:
These developments appeared to reassure the broader crypto markets as the value of Bitcoin and Ethereum, which had swooned amid the rumors of FTX’s potential collapse, however shot again up on information of the Binance deal. In the meantime, Binance’s native token BNB has rocketed up practically 20% with its market cap now exceeding $60 billion.
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