Binance CEO Rejects $40 Million Proposal from FTX CEO
In March 2019, Binance CEO Changpeng Zhao (CZ) declined a $40 million proposal from ex-FTX CEO Sam Bankman-Fried (SBF). The proposal involved the creation of a futures crypto exchange. SBF’s vision was to establish a futures exchange that minimized risk in the volatile world of crypto trading. Unlike traditional futures exchanges, FTX’s model would actively monitor trader activity and liquidate positions that exceeded collateral to prevent bad debts.
FTX Launches Futures Despite Binance Snub
Although Binance rejected the proposal, FTX went on to launch its own futures exchange in 2019. This decision led to tensions between CZ and SBF, with SBF referring to CZ as a “douche” for choosing not to fund his proposal. Binance decided to develop its own in-house futures platform, as their objectives at the time were different. FTX aimed to serve institutional investors while Binance focused on retail customers.
CZ Rejects FTX’s 2022 Acquisition Bid
In 2022, amidst FTX’s liquidity crisis, the platform approached Binance for a potential acquisition. However, CZ declined, stating that the platform was beyond saving. This rejection has gained prominence as SBF faces serious allegations of fraud and money laundering related to FTX’s downfall.
Hot Take: Binance CEO Turns Down FTX’s Proposals
Binance CEO Changpeng Zhao (CZ) made two significant decisions regarding proposals from ex-FTX CEO Sam Bankman-Fried (SBF). In 2019, CZ rejected a $40 million proposal for a futures crypto exchange. Instead, Binance developed its own in-house futures platform. In 2022, CZ declined FTX’s acquisition bid, stating that the platform was beyond saving. These decisions have shaped the rivalry between Binance and FTX, with tensions escalating between the two CEOs. As SBF faces legal issues related to FTX’s downfall, the rejected proposals have gained attention in the crypto community.
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