Will FTX's NFT and Gaming Business Be Affected by Binance's Acquisition?
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The greatest cryptocurrency story of the day relates to Binance's choice to purchase FTX in the wake of FTX's liquidity problem. The price of FTT, the native token of FTX, dropped 76.30% from yesterday as a result of this information. Many people are debating what the acquisition of Binance means for FTX's gaming and NFT companies. Given FTX's huge investment in Web3 development, the future of gaming, NFT, and esports is now questionable.
Binance’s CEO and Cofounder CZ, FTX’s CEO and Founder Sam Bankman-Fried
(Source: Yahoo Finance)
Throughout the bull year of 2021 and the beginning of 2022, FTX made some crucial decisions. It also established its own NFT marketplace, some esports, and its $2 billion web3 startup fund in addition to all of these things. The future seemed bright for FTX, and they were excited to start working with some major game publishers shortly.
NFT and FTX US
The outcome, nevertheless, isn't always what we anticipate. Clearly, FTX's predicament is growing worse as the market's downward trend continues. If Binance's transaction is successfully completed, FTX might have a new owner. Positively, Sam Bankman-Fried, the founder and CEO of FTX, stated today that the Binance transaction has not yet had an effect on his company's US operations.
The NFT market is one of FTX's primary business segments. The future of their gaming and NFT divisions is still unknown, although they have had the privilege of collaborating with NBA superstar Stephen Curry and Coachella, a music festival started by FTX US. If Binance really buys the exchange, will they be able to remain using their current name? Will they have the power to choose who runs the company and what is produced? Undoubtedly, other investors are as curious as I am. However, it would appear that this arrangement would not have an impact on the business's NFT marketplace division given the current circumstances.
Final Reflections
A corporation needs sufficient cash flow and liquidity, in my opinion, in order to endure and grow. The FTX exchange's current state does not appear encouraging. When deciding whether to trade on a platform, keep in mind to include exchange hazards in addition to market risks and dangers unique to cryptocurrencies.
Tenetur saepe quis est expedita cum et qui minima. Sit quia iste tempore saepe.
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