Share this article
Binance Exchange's BNB Token Leads Broad Crypto Rebound After FTX Bailout Offer
The exchange token used within the Binance trading environment jumped 20%, leading a broad rebound in crypto markets that had been in free fall over acute speculation that the rival FTX exchange might be facing a rapid run on deposits.
Updated Nov 9, 2022, 4:19 p.m. Published Nov 8, 2022, 5:59 p.m.
The giant crypto exchange Binance's in-house token, BNB, led a broad rebound in digital-asset markets on Tuesday after CEO Changpeng "CZ" Zhao announced a plan to rescue billionaire Sam Bankman-Fried's rival FTX exchange from the throes of a blockchain-era deposit run.
The CoinDesk Market Index, which tracks a basket of 162 digital assets, jumped about 4.8% in a little over an hour.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Most cryptocurrencies were plunging earlier in the day as fears spread that FTX might be facing liquidity issues; data showed that the balance of bitcoin on the FTX exchange had plunged by 99% to literally 1 BTC (worth about $20,000).
Crypto markets sharply rebounded after Bankman-Fried, FTX’s CEO, and Zhao – in a Twitter feud over the past few days – tweeted that their firms reached a deal.
Advertisement
Read more: FTX, Binance Deal Draws Antitrust Concern
BNB jumped 20% after the announcement and was changing hands at $362 as of press time. The token has outperformed the broader crypto market, up 11.5% in the last 24 hours. The CMI is still down 1.9% over the past 24 hours.
Bitcoin (BTC) surged above $20,000 and was changing hands around $19,766, down 4.5%, but still up from a low around $19,300 earlier in the day. Ether (ETH) popped 6% in an hour, recently trading around $1,500.
FTX's exchange token, FTT, bounced after the announcement but was still down 34% over the past 24 hours.
Solana's SOL, which had tumbled Monday on speculation that Bankman-Fried's trading firm, Alameda Research, might have to dump some of its holdings in a bid to raise liquidity, was still nursing an 18% loss.
More For You
Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
알아야 할 것:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
Top Stories
