FTX: Ready to acquire Bithumb?


Despite a resurgence in recent days, the cryptocurrency market is still stuck in a bear market. While most players are downsizing, the big two seem to be pursuing the opposite strategy: FTX and Binance. As for the first, rumors indicate a possible acquisition by Bithumb.

Bithumb in trouble?

Several weeks ago, Sam Bankman released the financial condition of the FTX exchange was encouraging. Claiming that we still have “a few billion” that can be used to help some cryptocurrency companies in trouble. While his group recently saved the BlockFi platform from bankruptcy, FTX is reportedly now in talks with the Bithumb platform.

Founded in 2014, Bithumb has shown some signs of instability in the past few weeks. For example, the Korean platform has paid for research by the Korean legal services, which are still investigating the collapse of the Earth ecosystem. According to Bloomberg media, the negotiations have been underway for several months. When asked for an answer, Bithumb declined to comment.

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Will the bear market lead to the consolidation of the cryptocurrency sector?

During a crisis, the affected sectors are usually prone to this. consolidate. Acquisitions are on the rise and dominant players tend to grow. Objective? Get old enough to be less affected by the crisis.

Smaller players in the sector tend to weaken faster as a result of the crisis. For some, salvation then becomes the only viable solution. The bear market we are going through is also bringing its share of chances for some players. A vision shared by the Binance platform, which, unlike other players like Coinbase, was one of the few platforms that continued to hire employees during this bear market.

For FTX, this acquisition could be a continuation of its growth policy. Keep in mind that the company has already bought other cryptocurrency players like Liquid or the Bitvo cryptocurrency exchange. The US subsidiary FTX.US is also looking for new funds. The FTX platform has already raised nearly $ 1 billion in the past 12 months. This increases its value to over 32 billion today.

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Maintain Investor Confidence!

If FTX wants to develop and is determined to compete with Binance, the platform is committed to that too. maintain investor confidence. Trust that has been shattered by months of bear markets and traumatic episodes such as the collapse of Terra and its LUNA and UST tokens.

By emphasizing its financial strength, the group calms the market and investors.

See also: End of the bear market?

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