Binance Walks Away From Deal To Acquire FTX

According to CoinDesk, Binance has walked away from a deal to acquire FTX. From the report: "As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com," the spokesperson told CoinDesk. "In the beginning, our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help. Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market. As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger." Further reading: Bitcoin Falls Below $16,000

See, Elon?

[enriquevagu]

You perform due diligence before submitting a firm offer for the company!! This would have saved so many problems!

(No, I will not pay the $8 XD )

Re:

[iAmWaySmarterThanYou]

Are you kidding? I'd pay 8 bucks for a 3 letter domain name.

The rest of it, no, but gimme that dns entry!

Re:

[kurkosdr]

Which is why Binance's offer wasn't firm but "pending due diligence". This is not the case of Elon Musk waiving due diligence as part of the offer.

Quick, where is the greater fool!?

[aaarrrgggh]

It will be interesting to see how the investment banks with extensive crypto holdings are going to play this. From my skeptical eyes, I have a hard time seeing a recovery in cryptocurrencies for a long time.

Pump & Dump?

[rsilvergun]

were they trying to keep the value of their holds up long enough to get out? It seems odd to offer to buy a company that's failing this obviously at all. I guess it could just be raw incompetence.

Re:

[fuzzyfuzzyfungus]

Given that their offer was on a 'no obligation, pending due diligence' basis it seems hard to argue that it was a matter of incompetence, there just isn't any risk in saying "yeah, maybe I'll buy if I end up liking the look of things; otherwise I won't"; but it would be quite interesting to know if that offer was ever made in good faith, just with something even worse than expected turning up on inspection, or whether there wasn't a chance but Binance had some interest in briefly keeping some hope alive(whe

It's all coming together

[quonset]

Bitcoin dropping, Tesla falling, Meta plunging. What a time to be alive.

Re:It's all coming together

[quonset]

Forgot to mention, Musk is now pleading with advertisers to stay onboard [cnn.com] after saying he'd "name shame".

Apparently he's following the path of his idol in Moscow: talk a big game before turning tail and running away.

A house of cards built on another house of cards

[DarmokandJalad]

Nearly every cryptocurrency exchange's economic solvency is dependent on the value of fake tokens they have sold to each other. When one scam collapses, every other scam has to sell into a plunging market to remain above water. This is perhaps the first time in history regulators have permitted pyramid schemes to be funded by other pyramid schemes. The Feds need to grow a pair and start full regulating these financial instruments of mass destruction.

Re:

[iAmWaySmarterThanYou]

The only regulation required is to ban them entirely.

Re:

[larwe]

Indeed. I found this piece of doubletalk particularly risible: "As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.". The entire philosophical point of decentralization in cryptocurrencies was/is to make the ecosystem immune from regulation (regulation being perceived as a local failure in the system, and to be routed around).

Re:

[bsdetector101]

just let it collapse ! Nobody wanted government involvement/backing when all this started ! So WHY should the Feds get involved and try to save it !!! Everyone knew what they were getting into or should have, but that is on them !! Greed !!!

Re:

[DarmokandJalad]

It's not about saving, it's about protecting unsophisticated investors from these scams. These exchanges should not be allowed to sell tokens without the same fiduciary standard imposed on all finance firms.