Sam Bankman-Fried, founder of the now-bankrupt cryptocurrency exchange FTX, testified in court on Friday that he had intended to sell FTX to crypto exchange Binance when it was in its infancy. Bankman-Fried wanted the exchange to specialize in margin trading and offer customers the ability to make outsized bets. Binance expressed interest in purchasing FTX, however, they ultimately backed out of the potential acquisition. FTX was able to gain traction by word of mouth and was making $3 million in daily revenue by 2021. The exchange offered a comprehensive risk engine and cross-margin trading as two of its main selling points. Binance was an early investor in FTX, giving the exchange $80 million in BNB tokens as seed money. However, FTX bought out Binance’s stake through a $2.1 billion mix of FTT and other assets. FTT fell into a tailspin last November when Binance moved to sell its holdings of the token. Bankman-Fried said their goal with FTT was to give users benefits for holding it and pass along some of the exchange’s success by buying back and burning FTT tokens each week.
#FTX #Binance #Cryptocurrency #CryptoExchanges
You can read more about this topic here: Decrypt: Sam Bankman-Fried Says He Wanted to Sell FTX to Binance Since It Was Founded
