Binance can buy FTX, the New Proof of Reserves app from Binance, ARK Invest buys 420k more Coinbase shares.
Binance CEO announces intention to acquire FTX
After Binance CEO Changpeng Zhao announced that the company would liquidate its FTT position in FTX tokens, FTX CEO Sam Bankman-Fried, also known as ‘SBF,’ apparently made a statement to quell rumors of disagreements between the two major crypto exchanges.
The Twitter post by Bankman-Fried on November 8 suggests that FTX has agreed to a strategic transaction with Binance following the attempts to clean up its withdrawal backlog. SBF said it asked Binance to step in, aiming to clear liquidity bottlenecks and hedge assets on a 1:1 basis.
“I know there are rumors circulating on social media about a conflict between the two exchanges. But Binance has repeatedly demonstrated its commitment to a more decentralized global economy as it works to improve industry relations with regulators. We are in safe hands,” he said.
Zhao also shared on Twitter that FTX requested assistance from Binance on November 8 due to a significant liquidity crunch. According to CZ, the transaction SBF referred to was a non-binding letter of intent for Binance to purchase FTX. Zhao added that Binance evaluates this situation in real time and has the opportunity to withdraw from the deal at any time.
New Proof of Reserves app from Binance
Amid the liquidity crisis and rumors of the acquisition of cryptocurrency exchange FTX, Binance CEO Changpeng Zhao announced that the exchange will soon launch a monitoring system called Proof-of-Reserves. This system provides verification of digital assets in companies or exchanges.
Changpeng Zhao promised on November 8 that he would implement a Proof-of-Reserve mechanism on Binance to offer full transparency. Binance will use Merkle Trees, a data structure used to more efficiently and securely encrypt blockchain data, to begin implementing the Proof-of-Reserve mechanism.
An independent third party would run the Proof-of-Reserve mechanism. This mechanism validates whether investors’ assets are stored as claimed.
ARK Invest buys 420k more Coinbase shares
ARK Invest, an investment management firm led by Cathie Wood, has acquired another 420,949 shares of cryptocurrency exchange Coinbase (COIN). Shares of the stock market fell 11 percent on Tuesday, November 8, to their lowest level since July 1.
ARK Invest increased its Coinbase shares in a total of 3 mutual funds: ARK Innovation, ARK Next Generation Internet, and ARK Fintech Innovation.
On the other hand, ARK Invest’s Fintech Innovation Fund (ARKF) bought 10,880 shares of Coinbase (COIN) at the end of October. The purchased shares were worth approximately 722 thousand dollars. Thus, the fund increased the value of its shares to $60.5 million. The previous Coinbase share purchase of ARK took place in June.
In August, ARK’s Chief Investment Officer, Cathie Wood, announced that the fund had reduced its COIN holdings due to an investigation into Coinbase by the US Securities and Exchange Commission (SEC). Wood described the investigation as a risk, stating that ARK will sell 1.1 million Coinbase shares.