Binance is already the biggest cryptocurrency exchange in the world. It appears that the company will keep improving its presence across different industries.
By investing in a derivatives platform, an interesting decision has been made.
FTX is a hot Commodity
Very few details are known about the deal at this time.
Binance has invested in FTX and formed a strategic partnership.
This involves FTX giving the exchange some equity in exchange for their investments.
Binance’s team has also purchased long position in FTX’s token called FTT.
Albeit this is a minority stake, the deal can still be worth several million dollars.
For a company that is less than a year old, FTX has made a fair few headlines.
FTX faced a $150 million lawsuit not that long ago.
Gaining the support from Binance so soon after its launch shows the company appears to be doing something right.
Despite the equity purchase, FTX will remain an independent operation at all times.
It is an interesting decision by Binance’s team to pursue a company active in crypto derivatives.
This sector is slated to undergo a regulatory crackdown in the weeks to come.
How that will affect the likes of FTX, remains to be determined.