Crypto markets have been shaken by news that FTX, once one of the biggest exchanges in the market, will be acquired by a larger competitor, Binance, causing coins to plummet. However, for investors still looking for gains, there are massive opportunities in fantasy sports and gaming tokens.
FTX Gets Acquired, Sending Crypto Tumbling
FTX and Binance have a long history dating back to the former’s inception. Binance invested in FTX before exiting the position last year, receiving $2.1 billion in both Binance USD (BUSD) and FTX Token (FTT).
Over the weekend, Binance Chief Executive Officer, Changpeng Zhao, confirmed on social media that his company would offload its training FTT stash, valued at over $500 million.
FTT’s total market cap was just over $2.5 billion at the time, so this move would undoubtedly crater the digital asset’s price. This set off a flurry of panic selling that led to a massive FTT slump.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ Binance (@cz_binance) November 6, 2022
As of Monday, speculations about FTX and the company’s insolvency began circulating. A leaked balance sheet found that it had been exposed to a liquidity crunch due to Alameda Research – a quant trading firm founded by FTX founder Sam Bankman-Fried. With speculations on the rise, Bankman-Fried and other top brass from FTX and Alameda stepped in to try and quell the markets, all to no avail.
– the balance sheet breaks out a few of our biggest long positions; we obviously have hedges that aren’t listed
– given the tightening in the crypto credit space this year we’ve returned most of our loans by now
— Caroline (@carolinecapital) November 6, 2022
On Tuesday, reports stated that FTX had paused customer withdrawals. Later that day, Zhao confirmed that Binance had signed a non-binding letter of intent to purchase FTX’s international business outrightly. The announcement sent a ripple effect across the crypto market.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ Binance (@cz_binance) November 8, 2022
FTT has since dropped by over 75% in the past 24 hours, while most major coins have also seen sharp slumps. At press time, the entire market has been down by 11.26% in the past 24 hours.
Fantasy Sports – A Viable, Profitable Escape
With the crypto market in a tailspin, investors are looking for digital assets to help them withstand the market downturn and still enjoy gains. As they look to a different industry for survival, fantasy blockchain gaming could be the key.
Over the last two years, blockchain gaming has grown tremendously. While it has been affected by the market downturn, it is one of those spaces tipped to see future gains. When this is combined with the popularity of fantasy sports, investors have something truly special.
The sports season is in full swing, with teams and athletes from different parts of the world competing for supremacy in their respective sports and leagues. Fans are also engaged worldwide, implying a high potential for gains across the board.
IBAT Ready for Another Centralized Exchange Listing
This is where a platform like Battle Infinity comes in. The gaming platform combines fantasy sports with the metaverse and non-fungible tokens (NFTs), making it easy for investors and players to profit.
Battle Infiniity’s IBAT token already had one of the most impressive presales in the market. The digital asset is set to skyrocket in value after being listed on the MEXC centralized exchange this week. IBAT will be available for spot and futures trading, making it an attractive asset for retail and sophisticated traders.
— Battle Infinity (@IBATOFFICIAL) November 6, 2022
MEXC is one of the world’s largest exchanges, with over 10 million customers and more than $1 billion in trading volume. IBAT is now set to enjoy massive investor exposure and liquidity infusion, a good prospect for value-seeking investors.
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