Binance unlikely to bail out FTX (Patreon)

Cryptocurrency exchange giant Binance is highly unlikely to go through with its proposed acquisition of struggling rival FTX after less than a day of reviewing the company, according to a person familiar with the matter.

Binance’s nonbinding letter of intent for the takeover – announced Tuesday as FTX’s financial position appeared to be spiraling out of control – hinged on Binance performing due diligence. Roughly half a day into that process of reviewing FTX’s internal data and loan commitments has led Binance to strongly lean against completing the transaction, the person said.

What this means is holdings will be sold - think Solana and others will be sold at the margin - SBF owned 1/13th of the supply and I think it’s already being sold based on what I can see. Any other assets they have they will sell. Wish I had better news but this stuff is spiraling out of control fast and FTX will hit the dirt.

Please note the Blockchain itself is fine it’s just everybody is nervous and there are no marginal buyers which means the selling pressure far exceeds the buying pressure which makes the price go down due to the forced sale.