Binance Invests in Derivatives Platform FTX, Sum Not Disclosed

As Binance continues to expand in the industry, it has invested an undisclosed sum in the crypto derivatives platform FTX.

Announced on Friday, the move came as a strategic investment from the global exchange, which is constantly acquiring stakes in other platforms.

In addition to the equity investments in FTX, the Malta-registered exchange has also taken a long-term position in the FTX Token (FTT). This, according to the exchange, will help in the sustainable growth of the FTX ecosystem.

Per the deal, FTX will help to build out the Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and institutional product offerings across the Binance ecosystem, including its global exchange and over-the-counter (OTC) trading desk.

Commenting on the investment, Binance’s founder and CEO, Changpeng “CZ” Zhao, said: “The FTX team has built an innovative crypto Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term with stunning growth. With their backgrounds as professional traders, we see quite a bit ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives markets. We are pleased to have an excellent partner joining the Binance ecosystem and aim to grow the crypto market together.”

The demand for crypto futures

Launched earlier this year, FTX is one of the most widely used crypto derivatives exchanges. The exchange grabbed headlines when a $150 million lawsuit was brought against it for market manipulation and selling unlicensed securities in the US. Allegations were also made that the manipulations were done by Binance, which the vocal head of the exchange denied. The charges were dropped by the court earlier this month.

“Binance is a market leader which has strong synergy with derivatives platforms, and we appreciate their global industry leadership, consistent execution, and innovation,” Sam Bankman-Fried, founder and CEO of FTX, said. “The investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations.”

Meanwhile, Binance also acquired Indian crypto exchange WazirX and decentralized applications (DApps) analytics platform DappReview.