Changpeng Zhao, CEO of Binance, shared how user confidence in the sector has declined as a result of the near collapse of FTX.
CZ later added that Binance’s acquisition of FTX should not be viewed as a victory.
Binance’s CEO, Changpeng Zhao, took to Twitter to share a note addressing the recent developments in the crypto industry.
CZ later shared that the acquisition of FTX should not be dubbed a victory for Binance. He later added how the recent FTX-Alameda developments have shaken up user confidence and faith in the industry.
The Purchase of FTX Is Not a Win for Us: Binance’s CZ
Binance’s CZ has shared how the recent FTX Alameda implosion has shaken up user faith in the industry. In a heartfelt note shared via Twitter, CZ outlined that Binance’s acquisition of FTX should not be referred to as a “win” for the exchange considering the near collapse of FTX has intensified regulator scrutiny in the crypto sector
CZ further stated how the unprecedented FTX implosion will have a lasting impact on user sentiment in the industry. He later stressed that the recent developments will result in heightened regulatory scrutiny of exchanges, leading governments around the world to tighten their licencing rules and make it harder for the sector to expand their base abroad.
“FTX going down is not good for anyone in the industry. Do not view it as a win for us. User confidence is severely shaken. Regulators will scrutinise the exchanges even more. “Licenses around the globe will be harder to get.”
CZ also noted that people will now consider Binance to be one of the leading crypto entities, which will ultimately lead users to criticise the exchange’s tactics and methodologies. However, despite such grave concerns, CZ shared how Binance is used to being okay and “leaning into the headwinds.”
“And people now will think we are the biggest and will attack us even more.” But that’s okay. We are used to being open and leaning into the headwinds. In fact, we embrace scrutiny. “We must significantly increase our transparency, proof of reserves, insurance funds, etc.”
The recent Alameda-FTX debacle has led several crypto firms to come clean concerning their adopted crypto practises and policies. Earlier, Coinbase CEO Brian Armstrong had also shared a statement via Twitter, emphasising the need for transparency in the crypto sector.
Zhao further shared how users must not trade their FTT tokens for now and has assured his followers that “things will eventually play out.”
Zhao’s statement also mentions how Binance’s chief was not prepared for the unprecedented FTX implosion. He later shared how Sam Bankman Fried had called him 24 hours before the deal was announced.
“We did not master this or anything related to it.” It was less than 24 hours ago that SBF called me, and before that, I had very little knowledge of the internal state of things. CZ shared.
The Binance-FTX deal has sent shockwaves throughout the crypto industry, surprising every player involved in the sector. The acquisition of FTX by Binance was primarily carried out to protect FTT from crashing like the LUNA crypto token and was finalised to protect user funds and assets.