Changpeng Zhao (CZ), the Chief Executive Officer (CEO) of crypto exchange giant Binance has reportedly signed a Letter of Intent (LOI) agreement to fully own the FTX crypto exchange.
Please be informed that the ownership is a follow-up from FTX officials contacting Binance directly to express the cash flow problems their company is facing in relation to the large withdrawal of funds.
However, Binance is said to need some time to discuss the matter and they are also allowed to withdraw from the deal if FTT is in an unsalvageable state.
In general, the largest crypto exchange Binance was the first company to give full support to FTX CEO Sam Bankman-Fried, but now their relationship is starting to suffer as FTX grows and becomes famous.
The streak saw CZ sell a number of FTT token holdings on Binance as the two executives criticized each other.
The move has resulted in the CEO of FTX suffering a number of losses and not forgetting that the crypto market has seen a drastic fall from its peak of $1.07 trillion which has sparked concern among investors.
Returning to the original topic, CZ suggests that every crypto exchanger implement merkle-tree proof-of-reserves to avoid future concerns about the remaining reserves immediately after he acts to buy FTX.
It is understood that Merkle-tree is a data structure that works to speed up data verification and maintain its integrity.
In fact, Merkle-tree enables inconsistency checking and is useful for distributed systems including its deep use of Bitcoin (BTC) or blockchain.
