FTX and its CEO, Sam Bankman-Fried (SBF), are in a critical situation after Binance rejected potential partnership with FTX. But hours after Binance’s withdrawal, Tron (TRX) founder Justin Sun pointed to a potential partnership with FTX. Here are the details…
TRON founder points to partnership with FTX
FTX stunned the crypto industry on Tuesday when its founder Bankman-Fried announced that it was facing liquidity issues just days after tweeting that the stock market was “doing well.” Meanwhile, Justin Sun, the founder of the Tron cryptocurrency network, made a statement at night, hours after Binance announced that it would not be able to terminate the FTX deal. Sun tweeted that he and his team are “creating a solution” with cryptocurrency exchange FTX. He explained that they are working on a deal to buy the company.
As we reported, FTX is facing a major liquidity crunch. That’s why Sun said his team is working with all TRX holders on the FTX platform. He also added that they are working with FTX to “forward”. In additional tweets, Justin Sun also hinted at a potential partnership with FTX. Sun used the following statements:
In addition to my announcement that I will support TRX, BTT, JST, SUN, HT token holders, we are trying to create a solution together with FTX. The ongoing liquidity crunch is detrimental to industry development and investors alike. My team is working day and night to prevent further disruption. I believe that the situation is manageable with a holistic approach with our partners. Stay tuned.
FTX CEO retweeted Sun’s statement
The same tweet was also retweeted by FTX CEO Sam Bankman-Fried. Time will tell if Justin Sun will make a “takeover offer” to FTX. Meanwhile, the gap in FTX and Alameda’s balance sheets appears larger than expected. Sun’s tweet did not fully specify whether this solution would save all assets in FTX. Therefore, the solution in question can only relate to tokens held on the exchange and belonging to the Tron ecosystem.
Recently, Bankman-Fried said that he had reached an agreement with Binance founder Changpeng Zhao to enter into a transaction. However, as we have reported as Cryptokoin.com, Binance canceled the agreement with FTX. Binance said, “Initially, our hope was to assist FTX clients in providing liquidity. But the issues are beyond our control or our ability to help,” he said. This left Sam Bankman-Fried no choice but to explore other potential investors. In a message to FTX employees, SBF said:
I’m working as fast as I can in the next steps here. I wish I could offer you more clarity. I will continue to fight for these (goals) as long as I can, as long as it’s right for me. I’m exploring all options. I’m so sorry for coming to this place and my role here. It’s my responsibility and I’m sorry.