FTX To Be Acquired By Binance With Its Games And Esports Division
Bahamian cryptocurrency exchange, FTX is set to be acquired by Binance. Binance has released its letter of intent to acquire the assets of FTX. The deal was announced by Changpeng Zhao, the founder of Binance on 8 November.
Zhao wrote on Twitter saying that the company asked for their help and that Binance will conduct full diligence in the coming days. He also added that it can pull out of the deal anytime if the situation arises.
Binance is more reserved in terms of partnerships even though they have invested in gaming.
The news of the acquisition comes after less than 18 months when FTX agreed to the naming rights for ten-year with TSM for USD 210 million. The agreement stated that TSM would operate under the name of TSM FTX.
The announcement said that the company would acquire FTX.com fully and help with the liquidity crunch. This deal is set to mark the union of the two biggest cryptocurrency exchanges globally. The acquisition amount has not yet been disclosed.
In 2021, FTX has signed a deal sponsorship deal with TSM. The news brings fears regarding the impact and difficulties the esports industry will have to face.
In February 2022, FTX launched its gaming division as a crypto-as-service. The goal was to increase the adoption of NFTs and cryptocurrency. The company has a prior commitment to investing in Solana blockchain and Lightspeed Venture Partners and Solana Ventures.
In March 2022, Good Luck Games also joined FTX. FTX’s fortunes have been fading due to a decline in the crypto market. The company may have new ownership in some time. The FTX NFT had various partnerships with Coachella and Stephen Curry.
The FTX U.S. is not currently impacted by the deal says CEO Sam Bankman-Fried. The FTX Ventures invested in various NFTs and Web3 gaming creators. The division was founded under FTX.