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Extreme volatility has rocked the entire Bitcoin and cryptocurrency market after major digital asset exchange Binance announced its intention to acquire troubled exchange FTX.
Earlier on Tuesday, Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried reached an agreement that would allow Binance to acquire FTX.com outright.
FTX Token (FTT) is leading the market crash, currently trading at $2.91, down more than 86% on its final day and down 93% from its all-time high.
At the time of writing, FTT is a low denomination altcoin with a market cap of $773 million.
FTT’s price crash is consistent with concerns that FTX’s trading arm, Alameda Research, relies heavily on tokens as collateral for its loans, which could pose a thorny issue for the company’s debt obligations.
According to Binance CEO Changpeng Zhao, the exchange is currently working on due diligence and other processes related to the acquisition.
News of the acquisition comes after days of back and forth between the two CEOs on Twitter amid rumors of FTX’s bankruptcy and liquidity issues.
After news of the deal broke, the cryptocurrency market initially rose as most altcoins, including Bitcoin (BTC), Ethereum (ETH), and FTT, enjoyed a healthy rally.
However, the market plummeted and resumed its downtrend.According to Crypto Data Aggregator coin glassthe market has liquidated more than $854 million to date, the highest amount since August 19.
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