The economic quagmire that Ghana is currently going through has invoked some interesting counter propositions of whether the free market at work is worth it in the long run?
So, for the purpose of these counter propositions – let us use the statement of Binance – on why they couldn’t acquire FTX to have a peak in the near future of how things would eventually pawn out.
Binance’s failure to acquire FTX.com is the leading headline on major business networks.
Binance is a crypto currency exchange which is the largest exchange in the world in terms of daily trading volume of crypto currencies. It was founded in 2017 and is registered in the Cayman Islands.
Binance was founded by Changpeng Zhao.
According to excerpts from CNBC, Binance is backing out of its plans to acquire FTX, the company said Wednesday, leaving Sam Bankman-Fried’s crypto empire on the verge of collapse.
The reversal comes one day after Binance CEO Changpeng Zhao announced that the world’s largest cryptocurrency firm had reached a non-binding deal to buy FTX’s non-U.S. businesses for an undisclosed amount, rescuing the company from a liquidity crisis. Earlier this year, FTX was valued at US$32 billion by private investors.
On Monday night, Bankman-Fried was ‘scrambling’ to raise money from venture capitalists and other investors before he went to Binance. According to sources with knowledge of the matter. It is unclear who is next in line to buy the beleaguered crypto exchange.
The failed acquisition of the world’s fourth-largest exchange is the latest chapter in a shocking collapse that’s rocked the crypto world. Bankman-Fried tried to reassure investors just this week that the company’s assets were fine. But after Binance’s Zhao said publicly that his company was selling its holdings in FTX’s native token FTT, the sell-off was on, and FTX could do nothing to stop it.
The statement from Binance did strike a chord on the eventual turn out of a free market. The free market does weed out the outliers.
It does create transparency and accountability.
The Binance statement reads:
“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.
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 decentralisation, the ecosystem will grow stronger.”
The free market always does find ways of correcting itself no matter the turbulence.