FTX CEO Sam Bankman-Fried said in a tweet Monday morning that FTX has no plans to acquire Huobi. Huobi is one of the world’s largest cryptocurrency exchanges, with a daily trading volume of over $1 billion.
Just to be explicit because apparently a lot of people are saying this:
No, we are not planning to acquire Huobi.
— SBF (@SBF_FTX) August 29, 2022
Huobi’s native token, HT fell about 6% after Bankman-Fried’s tweet.
There is growing speculation that FTX will extend the “financial life cycle” to several troubled cryptocurrency companies including exchange BlockFi and lending firm Voyager Digital. The unit will then plan to acquire both companies. At the moment, there is a lot of speculation surrounding FTX’s plans to acquire Seychelles-based Huobi.
In mid-August, Bloomberg reported that FTX held preliminary talks with Huobi founder Leon Li to buy a majority stake in Huobi. The move was an impact that helped value the company at $3 billion or more. A deal could be finalized as early as the end of this month, and Justin Sun, the founder of the Tron blockchain network, is also interested in auctioning shares. However, Sun denied this in a tweet.
Earlier this year, FTX acquired Japanese exchange Liquid and also agreed to acquire Canadian exchange Bitvo. FTX is reportedly interested in acquiring the free trading app Robinhood. However, Robinhood CEO Vlad Tenev said in early August that his company would operate independently.