Binance Backs Out of FTX Acquisition

Binance Backs Out of FTX Acquisition

Assessment

Interactive Video

Business

University

Hard

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Quizizz Content

FREE Resource

The video discusses the potential bankruptcy of FTX and Binance's involvement in a failed acquisition deal. Kraken's CEO shares insights on their conservative business practices and lack of exposure to FTX. The video also highlights market risks, leverage, and potential future liquidity crises in the crypto industry.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the main reason Binance decided not to acquire FTX?

FTX was not interested in selling.

Binance lacked the funds.

The regulatory scrutiny was too intense.

FTX had too many assets.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical event is compared to the FTX situation?

The Mt. Gox incident

The dot-com bubble burst

The fall of Lehman Brothers

The Enron scandal

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might Kraken be interested in acquiring some of FTX's assets?

To expand their user base

To gain control over FTX's headquarters

To acquire specific licenses or subsidiaries

To eliminate competition

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Kraken's approach to handling client funds?

They invest them in hedge funds.

They lend them to other exchanges.

They use them for trading.

They keep them secure and separate.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What should investors look for when choosing a crypto exchange?

The exchange's office location

The exchange's marketing strategies

The exchange's history and proof of reserves

The exchange's social media presence

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk of highly centralized crypto assets?

They are easily accessible.

They are more secure.

They are prone to liquidity crises.

They have stable value.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant factor in the decline of FTX's asset value?

A competitor's large ownership of FTX tokens

A new regulatory policy

A sudden increase in FTX's user base

A technological failure