- Binance agreed to purchase the FTX exchange after a liquidity crisis.
- Any acquisitions made by FTX.US will not be affected or controlled by Binance, as FTX.US will exist as a separate entity.
Binance buying FTX could spell numerous differences regarding the outcome of their NFT and gaming initiatives, as, under new leadership, the direction could see a fundamental shift.
Binance to Acquire FTX
FTX asked Binance to help clear out its withdrawals backlog, based on a tweet by FTX CEO Sam Bankman-Fried.
Binance has agreed to purchase one of its main competitors, and the CEO, Changpeng “CZ” Zhao, confirmed on Twitter that the two exchanges signed a non-binding letter of intent (LOI).
How The Acquisition Can Affect The Future of FTX NFTs and Games
However, FTX acquired the game studio Good Luck Games in 2022, another deal handled by FTX.US.
The NFT marketplace will not be a part of Binance moving forward, and neither will Good Luck Games due to this.
Furthermore, FTX made a $210 million deal to sponsor the esports club Team SoloMid (TSM) for the next ten years in 2021. This was a joint deal with FTX Trading Limited (FTX.com) and FTX US.
The FTX exchange also made a seven-year deal to sponsor the League of Legends Championship Series (LCS). The deal was attributed to FTX and not FTX.US.
FTX Ventures, a $2 billion investment arm of FTX, invested in numerous NFT and Web3 gaming creators. They included Yuga Labs, Faraway, and the team behind the NFT project Doodles. FTX Ventures was established under FTX’s parent company, meaning it will move to Binance.
The FTX Gaming Division was established under FTX.US, as reported by Bloomberg. This means it will remain a separate entity.
On the Flipside
- There is no official information or announcement that FTX.US-related acquisitions and partnerships will not make their way to Binance.
- FTX.US will remain a separate entity. We do not yet know if it will rebrand or retain its name. If it rebrands, it can affect all existing partnerships.
Why You Should Care
Historically, FTX was one of the main competitors Binance had. By acquiring it, the company is putting itself in a position where it can achieve much larger market dominance. Any NFT and gaming-related products that FTX acquired can now move towards a new direction. A direction that is in the best interest of the Binance ecosystem. The acquisition will remove much-needed competition within the NFT and GameFi sector and provide one company with a much higher level of dominance.
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