Crypto overall is fine despite FTX’s insolvency, says Changpeng Zhao
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The CEO of Binance said that the collapse of the FTX cryptocurrency exchange will affect more companies.
He noted that the overall crypto market is good despite the FTX default.
CZ’s tweet on Coinbase caused a lot of misunderstanding in the crypto community.
The crypto industry is doing well despite recent events
Changpeng Zhao, CEO Binance crypto exchange, believes the crypto market is generally healthy despite the FTX bankruptcy. When asked about the impact of the FTX collapse, CZ told Bloomberg that;
“I think we’re going to see a little bit of contagion. Every time an exchange collapses, there’s a lot of other people or institutions on the platform that have money. I think we saw Genesis stop the pullback. I think it would affect one or two or two others. Every time the platform fails, there are knock-on effects. But overall, the industry is good.”
This latest cryptocurrency news comes a few days after CZ tweeted about Coinbase. The Bloomberg hosts said his tweets suggest that some crypto companies, such as Coinbase and Grayscale, may be experiencing liquidity problems. However, CZ deleted the tweet a few hours later. When asked if investors should be concerned, he clarified.
“I didn’t tweet about shades of gray, and I didn’t say Coinbase had liquidity problems. I only referred to two articles. One article revealed that Coinbase said the grayscales are carrying 635,000 bitcoins. In another article, Coinbase revealed a few months ago that grayscale only had 600,000 bitcoins on the exchange. I just posted to confirm if the two numbers were correct. It caused a lot of misunderstanding in the community and I deleted the tweet.”
CZ’s tweet is not spreading rumours
The Bloomberg host also asked CZ if the tweet was meant to spread rumors that cast doubt on the credibility of these companies so he could build his own empire. CZ replied that;
“I don’t know if those other companies have insolvency problems. The thing is, unless we get accurate financial statements, we won’t know for sure. But I’m not doing it because we want to build an empire.”
He added that he blamed himself for not tweeting about FTX in time. He added that;
“As an industry, we allowed FTX to get too big before we started questioning the company’s financial statements.”
Binance is currently the world’s leading crypto exchange and handles about $10 billion in daily trading.