Binance, the world’s largest cryptocurrency trading platform, has agreed to buy FTX, which faces difficulties with customer withdrawals.
Changpeng Zhao, Binance CEO, said on Twitter that the deal is done to protect users.
After all, the deal shocked Bitcoin watchers since FTX had been the one who bailed out other struggling crypto businesses for months.
Besides, FTX chief executive Sam Bankman-Fried is the country’s second-largest Democratic donor during this election cycle.
Bankman-Fried is also a major lobbyist on Capitol Hill for crypto and BTC regulations.
He said on Twitter that the process of withdrawal requests “may take a bit to settle.”
However, he stated that “customers are protected” as FTX was valued at $32 billion at the beginning of the year.
The negative impact is understandable since digital assets have decreased by around $2 trillion over the last year.
Bitcoin, the largest cryptocurrency, was sold by more than 10 percent on Tuesday afternoon.
Meanwhile, Ethereum, the second-largest cryptocurrency, fell by 15 percent.
Cryptocurrency users are very nervous as FTX is a large trading platform that can end quickly.
On the other hand, Binance dominantly controls the crypto exchange market since it has 72 percent of the total market share.
Binance conducted more than $35 billion in trades daily, around 10 times the amount of FTX or Coinbase.