The owner of the cryptocurrency exchange Bithumb in South Korea, Vidente, announced on Tuesday that it had held negotiations with FTX over the possibility of selling its stake to the latter.
The business has stated that it is investigating all of the opportunities that are available to it, such as a complete acquisition of Bithumb or shared control of the exchange.
Vidente stated that a decision regarding a particular line of action has not yet been made.
FTX and its founder Sam Bankman-Fried are taking an aggressive approach to acquisitions in the midst of a major downturn in the cryptocurrency market. In the past few months, the value of cryptocurrencies has dropped by billions of dollars, and there has been talk of another acquisition as part of this strategy.
The previous worth of the company was $4.8 billion, but FTX has inked an agreement that gives it the option to buy the cryptocurrency lending startup BlockFi at a maximum price of $240 million. This is a huge decrease from the company’s prior valuation.
FTX came into an agreement in the beginning of this year to buy Liquid, a cryptocurrency exchange based in Japan. If the partnership with Bithumb is successful, FTX will establish a stronger presence in the Asian market, particularly in South Korea, which is a nation with a significant appetite for crypto trading.
The Bithumb exchange is one of the largest ones in South Korea. According to data provided by CoinGecko, during its peak in the previous twenty-four hours, it completed well over half a billion dollars’ worth of trades.
In the meantime, Bankman-Fried has positioned himself as a lender of last choice in light of the current precarious situation of many crypto firms.
Voyager Digital was able to secure financing thanks to Alameda Research, the quantitative research organization owned and operated by Bankman-Fried. Because of its exposure to Three Arrows Capital, which was a hedge fund that ultimately collapsed and went bankrupt as well, Voyager Digital ultimately declared bankruptcy.