EddieJayonCrypto
6 Nov 22
• Binance is pulling out of FTX• Is there an opportunity for consolidation of crypto exchanges• Is FTX in troubleWith Binance pulling out of FTX, could FTX be in trouble? Here are my thoughts for the next week.It has been a fantastic few days in the Cryptoverse. Polygon, DOGE, SHIB, Ethereum, Bitcoi...
• Binance is pulling out of FTX• Is there an opportunity for consolidation of crypto exchanges• Is FTX in troubleWith Binance pulling out of FTX, could FTX be in trouble? Here are my thoughts for the next week.It has been a fantastic few days in the Cryptoverse. Polygon, DOGE, SHIB, Ethereum, Bitcoin and other coins have realized new recent highs. Of course, they have come back down due to the obvious profit taking, but that is still good news overall.That said, something that is going to rock the markets as the new spreads is that Binance is going to liquidate its $583M worth of FTT coin. That is the coin of FTX. This is a big deal since CZ, the CEO of Binance, has come out and said that he does not like what is going on at FTX and has decided to liquidate the coin they received as an early investor in FTX.Yeah, that last sentence through me for a loop, too. The Cryptoverse is even more incestuous than I had originally thought. I had no idea Binance was an investor, let alone early investor, in FTX. Now, CZ, the CEO of Binance, says this is not a move to take out a competitor. Rather he just doesn't like what is going on at FTX and is going to get out.I want you to think about something. CZ says he is not trying to do damage and that they will liquidate the FTT coins over months. That said, they could have moved the crypto into liquidation position in the same way. It is my thought this was a message he wanted to send. A message powerful enough to bring attention, but not cause too much of a ruckus. I think this is going to have an impact on the overall market. How much of an impact? I do not know but one nonetheless.This got me thinking about the solvency of FTX. More importantly, it got me thinking about the opportunity for consolidation among the crypto exchanges. CryptoCom is not doing all that well and Gemini had massive layoffs earlier this year. I can easily see smaller exchanges getting bought out by larger ones or even traditional financial institutions. I can also see consolidation among the smaller exchanges as a matter of survival.I am definitely expecting more to come out of this news and I expect the impacts to at least be far-reaching.