Binance Agrees to Buy FTX, What Will Happen to FTX’s NFTs

Binance Agrees to Buy FTX, What Will Happen to FTX’s NFTs

Cryptocurrency giant Binance has expressed interest in acquiring digital asset exchange FTX after the latter announced it was facing a liquidity crisis. The liquidity crisis comes amid the ongoing market downturn that has been going on for months.

Binance Agrees to Acquire FTX

In a Nov. 8 blog post, Binance CEO Changpeng Zhao confirmed that he was ready to buy FTX after the cryptocurrency exchange publicly confirmed that it was currently experiencing liquidity issues. The deal would include his company FTX US.

The upcoming purchase deal has sparked heated discussion within the crypto community about the fate of digital assets, including non-fungible tokens, gaming activity, and Metaverse projects related to crypto trading. It is worth noting that FTX made significant investments during cryptocurrency. The bull market in 2021 and earlier this year, including the launch of its NFT market offering NFTs, minted on Solana and Ethereum. Additionally, crypto exchanges heavily involved in esports sponsorship deals formed an infrastructure division and launched their $2 billion FFT venture investment arm. FTX had also invested heavily in other Web3 projects.

FTX Faces the Wrath of The Bear Market

Unfortunately, many of their investments have disappeared in the recent crypto winter, causing many digital assets to lose more than 70% of their value. The NFT market has suffered by more than 95%, with more than $440 billion in revenue. Down to just $5 billion at the end of the third quarter of this year. In a Nov. 9 blog post, Sam Bankman-Fried, the founder of FTX, clarified that the early purchase agreement would have no impact on FTX US. In this regard, the FTX-NFT market, which includes a decline for NBA star Stephen Curry, will not be affected. FTX US launched the NFT market in October.

But its investment arm includes makers of popular NFT and Web3 games, including Bored Ape Yacht Club creator Yuga Labs, the team behind the NFT Doodles project and Mini Royale: Nations developer, Faraway, can agree to the exchange with Binance.

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