Clash of the Titans - Binance and FTX Ordeal Explained by Crypto Twitter

Illuminati Archives - Crypto Twitter Op-Ed

The Crypto world has been absolutely floored by recent events. What seemingly started as some Twitter drama between the billionaire CEOs of two of the world’s largest crypto exchanges, escalated into fears, rumors and speculation of insolvency, bank runs and a blackswan liquidity crisis to dwarf the Three Arrows Capital and Terra Luna crash. All of it seemingly has culminated in Binance agreeing to acquire FTX - the implications of which will be massive. Let’s rewind and observe how the story played in real time… as immortalized by Crypto Twitter.  

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How it started: first, we start at the beginning - going back in time and studying the origins of the conflict between CZ and SBF

Alex Valaitis @alex_valaitis

Well @binance and @FTX_Official are officially at war with each other. What most people don't realize is that this conflict has been brewing since 2019. Here's the complete history of how we got to this point and why you should care MUST READ 🧵

Then the first shot was fired - The Shot Heard ‘Round the Crypto Twitter World

CZ 🔶 Binance @cz_binance

As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4

An offer of peace…

Caroline @carolinecapital

@cz_binance if you're looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!

An offer rejected…

CZ 🔶 Binance @cz_binance

Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.

CZ 🔶 Binance @cz_binance

@tier10k I didn't say that. It was a question, not a commitment. I think we will stay in the free market. We still hold LUNA (now LUNC) today. 😂

Crypto Twitter steps in to explain the madness….

Omar Bham (Crypt0) @crypt0snews

The FTX / Binance situation explained:

Miles Deutscher @milesdeutscher

Sam Bankman-Fried was once admired as the king of crypto. Now Alameda and FTX are rumoured to be on the brink of insolvency. 🧵: Here's how it all went wrong for SBF and FTX. 👇

How it’s going… The acquisition to end all acquisitions

SBF @SBF_FTX

1) Hey all: I have a few announcements to make. Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com (pending DD etc.).

CZ 🔶 Binance @cz_binance

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

CT analyzes and reacts….

🍿

wassielawyer @wassielawyer

1/ Ok so just processing this out loud because I am pretty mindblown that FTX chose - of all options, a buyout from Binance. These were the options open to SBF: (a) seek emergency debt financing, (b) seek new money investment, (c) liquidate assets and/or (d) buy time...

🍿

Yassine Elmandjra @yassineARK

- FTX secretly insolvent - BTC testing new lows - Alameda toast - Binance planning to acquire FTX - FTT down 80% headed to 0 - CZ announces proof of reserves - Su Zhu re-emerges - Do Kwon and Martin Shkreli on UpOnly - Coinbase temporarily down How was your day at the office?

🍿

Coffeezilla @coffeebreak_YT

For those who haven't been following: The world's 2nd biggest crypto exchange (FTX) just got bought out today by the number 1 (BINANCE), because it was secretly insolvent by over $1 billion and couldn't cover withdrawals. This is the wildest timeline.

🍿

Ryan Selkis 🥷 @twobitidiot

Nine years in crypto. Today is the craziest day since I bought my first Bitcoin in 2013. Crazier than Mt Gox Much crazier than 3AC/ LUNA Just shocking.

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boaz weinstein @boazweinstein

Every day I read about crypto, I understand it less and less. FTX was in talks two months ago to raise 1bn equity at a 32bn valuation. Binance threatens to dump 500mm FTX tokens and the whole thing just collapses? Explain it to me like I’m a 65 year old.

Finally, a summary timeline of events - What a journey…

Crypto India @CryptooIndia

1/ Binance to acquire FTX 🧵👇🏽 Timeline: 👉25th Aug - Sam Trabucco quits as Alameda Research CEO 👉27th Sep- Brett Harrison Quits as #FTX US president 🇺🇸 👉17th Oct - FTX under investigation by Texas DOB 👉23rd Oct - SBF criticized for supporting the DCCPA #DeFi bill 📄

jonwu.eth @jonwu_

FTX was the world's 3rd largest crypto exchange. Today it's said to be insolvent and in the midst of an acquisition by Binance. Here's everything you need to know about Alameda Research and the collapse of FTX: 👇

P.S. - Some last words…

CZ 🔶 Binance @cz_binance

Two big lessons: 1: Never use a token you created as collateral. 2: Don’t borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve. Binance has never used BNB for collateral, and we have never taken on debt. Stay #SAFU.🙏

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Whew….. What a roller coaster. Crypto never sleeps and this event had everyone on the edge of their seats. Where will we go from here? Make sure to follow us as we catalog and archive the story of crypto. The next chapter is being written as we speak.

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