Cryptocurrencies saw a second day of sharp declines on Wednesday, as investors continued to fret about the stability of the sector and the financial health of major exchange FTX despite plans for a rescue deal from bigger rival Binance.
Crypto giant Binance signed a nonbinding agreement on Tuesday to buy FTX’s non-US unit to help cover a “liquidity crunch” at the rival exchange.
The proposed deal between high-profile rivals followed week-long speculation about FTX’s financial health that snowballed into $6bn of withdrawals in the 72 hours before Tuesday’s deal, raising questions about the solvency of one of the world’s largest cryptocurrency exchanges.
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