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August 29, 2022

FTX Will Not Be Buying Huobi

Sam Bankman-Fried, the founder and CEO of FTX, said today that their cryptocurrency exchange has no plans to buy Huobi Global.

According to CoinGecko statistics, Huobi Global is a prominent cryptocurrency exchange with a 24-hour trading volume of $624 million, making it one of the world’s biggest.

A Bloomberg article earlier this month stated Huobi Group founder Leon Li was in discussions to sell his controlling ownership in the crypto exchange. According to the source, Sam Bankman-Fried and Tron creator Justin Sun were among the potential investors who met with Li.

Today, however, crypto millionaire Bankman-Fried said that his organization had no plans to purchase the exchange. “Just to be clear since it seems that a lot of people are claiming this: No, we are not intending to purchase Huobi,” he tweeted on Monday.

Huobi has been heavily impacted by the bear market, with rumours indicating that the exchange was intending to drastically reduce its personnel.

FTX is one of the largest crypto derivative exchanges in the world. It specializes in the area of futures, which involves investing in contracts that gamble on the future price of cryptocurrencies rather than purchasing them directly.

It is also one of the world’s major spot trading exchanges, having surpassed Coinbase in terms of volume for the first time early this year. According to a CNBC story last week, the firm, which generates money by collecting fees on every deal, will increase its income by more than 1,000% in 2021.

During the bear market, Sam Bankman-Fried stepped in to save a number of cryptocurrencies, donating $750 million to crypto lenders BlockFi and Voyager after they went bankrupt. Earlier this month, the CEO said that it was “disappointing” that other industry participants hadn’t “stepped forward” in the same manner.

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