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Can FTX still be saved? Tron and Ripple are interested in buying the exchange

Igor Grigorchenko

News editor

Nov 24, 2022 at 06:45

Billionaire Justin Sun, the founder of the Tron Foundation, is considering ways to buy the assets of the collapsed crypto exchange FTX, reports The Wall Street Journal. The head of Ripple has also expressed interest. Many market participants hope that if this deal goes through, it could calm the market and at least partially return predictability to the crypto world.

Does Tron want to save FTX?

The founder of Tron, the day before, briefly told reporters that he is open to negotiations with representatives of FTX, and some future deal formats have already been prepared. No further details are available at this time. The Wall Street Journal also adds that according to its sources right now they are actively negotiating the details of the future deal.

This information is also confirmed by Justin’s earlier statements. So a week ago, Justin Sun, said in a conversation with Bloomberg that he is ready for a “billion-dollar bailout” of cryptocurrency exchange FTX, which currently has debts of about $8 billion. 

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In an interview with Bloomberg, Sun noted that he is taking a different approach than the cryptocurrency exchange Binance, with which FTX has been in talks before. He pointed out that he will not rush with the purchase until he fully understands the details. In addition, it is stated that the company is also interested in some former FTX employees.

Is Ripple in on it too?

Ripple CEO Brad Garlinghouse made a similar statement last week. He confirmed that he had been contacted by Sam Bankman-Fried who asked him to save the FTX exchange, which had previously launched bankruptcy proceedings.

Also, according to Brad himself, they discussed several options and scenarios for buying the exchange’s assets. The head of Ripple said he was serious about the possibility and was carefully studying the details. 

How realistic are these deals?

The only thing experts agree on so far is that the bankruptcy procedure already started makes it very difficult to buy any part of FTX’s business and, at the very least, will drag out any possible deal in terms of time. Therefore, market expectations for the stabilization of the former FTX business through an injection of outside capital are greatly exaggerated.

As you can see on the chart, the $FTT token after the collapse to just above one dollar, does not react to any news, most likely even with the buyout of the FTX business the fate of this token is predetermined.

How can I make money on this?

The aftermath of the FTX crash showed that the market is very watchful of the loser and the winner. So the $FTX token collapsed to $1, while Binance’s $BNB token reached its historical peak value — such is the result of the confrontation between the two exchanges.

In line with this logic, it is likely that if takeovers by Ripple or Tron are successful, it will most likely have a favorable effect on their token prices. Consequently, it is possible to buy one of these two tokens in advance for investment purposes if you are confident about future FTX asset purchases. This will require keeping a close eye on the news around FTX’s fate so you can react in time to favorable price action.

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