UPDATE:A CoinDesk report suggesting Binance is learning toward scrapping the FTX rescue takeover sent cryptocurrencies and crypto-related stocks lower.
Coinbase Global Inc COIN andMicroStrategy Inc MSTR shares aretrading lower again Wednesday on continued downward pressure.The crypto-linked stocks areloweramid concerns over the financial condition of cryptocurrency exchange FTX.
Daiwa Capital downgraded Coinbase Global from Buy to Neutral and lowered its price target from $82 to $52.
What Happened?
Speculation surroundingFTX started last week following reports thatBankman-Fried's trading firmAlameda Research held a significantportion of itsbalance sheet inFTT, the native token of FTX.The crypto market has since grown concerned about FTX's liquidity.
Reports surfaced Tuesday that FTXwas halting withdrawalsas it saw investors liquidate positions.
As investors were dissecting the news and impact from the selloff, the leaders ofBinanceandFTXmade a surprising announcement.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days, Binance CEOChangpeng Zhaotweeted…Read More
According to data from Benzinga Pro:
COIN is trading lower by 4.58% to $48.50
MSTR is trading lower by 4.35% to $202.63