Research has shown that the deal to acquire FTX might benefit Binance much more than just gaining a sizable portion of the holdings of the trading platform.
In fact, Will Canny of CoinDesk reported on November 9 that a study by private wealth manager Bernstein suggested that the combined business that would result from the purchase agreement between Binance and FTX could give the former a greater than 80% share of the world’s cryptocurrency market.
Due to these implications, the FTX-Binance deal may draw considerable regulatory attention and even regulatory intervention, particularly from US and EU agencies if FTX has investments in those regions.
All eyes are immediately on the likelihood of the deal, and any chance that the agreement would fail would be negative for the digital asset market, analysts Gautam Chhugani and Manas Agrawal reported.
The report noted that Binance would need to look into any potential customer fund shortages and any “wrongdoings from the diversion of customer funds to related parties or unauthorized purposes” to avoid any trouble.
The note emphasized that should FTX’s finances become inconsistent, “Binance would acquire FTX as a fire sale, by making whole the customers,” which would cause investors to question the legitimacy of FTX’s actions.
Finally, the analysts came to the conclusion that the issue with FTX’s balance sheet might have “extremely disastrous results for investors.”