Changpeng “CZ” Zhao, the CEO of Binance, responded to inquiries from Bloomberg on Thursday regarding FTX contagion, Coinbase reserves, industry recovery fund, etc. He thinks that the failure of the cryptocurrency exchange FTX will cause some contagion for a while.
The fall of FTX will have some spillover effects on the cryptocurrency market, according to the CEO of Binance in an interview with Bloomberg on November 24. However, even if Genesis is unable to obtain $500 million, the sector will eventually rebound.
“Whenever one big player goes down, especially a trading platform, there are many people and institutions with money on the platform. We have seen Genesis halting withdrawals, probably there will be one or two more. However, the cascading effect will become smaller. Overall, the industry is fine.”
In response to a post that was deleted about Coinbase liquidity problems and Grayscale’s ownership of bitcoin, the CEO of Binance clarified that he was only challenging some of the information in the tweet. He is unsure if Grayscale or Coinbase is having problems.
The CEO of Binance claims he doesn’t want to disseminate misinformation. He merely seeks to increase the industry’s openness and oversight. He does, however, blame himself for letting FTX become too large and for failing to tweet early about selling FTT coins.
Additionally, the structure of the crypto industry recovery fund is already being discussed. The fund will receive contributions from many industry participants and be accessible via a blockchain crypto address. Furthermore, he verified that no Abu Dhabi company is talking about the industry recovery fund.
CZ disclosed that it initially set aside $1 billion to purchase distressed assets. Within the next six months, Binance will think about purchasing some companies’ assets. Today, a post with all the information will be published.