‘Do not view it as a ‘win’ for us’: Binance CZ says on FTX acquisition

Binance CEO Changpeng Zhao(CZ) shared his views regarding the caller FTX  debacle with the Binance community, stating FTX going down is not bully for the manufacture arsenic it volition invited tougher regulations astir the globe. 

“Do not presumption it arsenic a “win for us. User assurance is severely shaken. Regulators volition scrutinize exchanges adjacent more. Licenses astir the globe volition beryllium harder to get,” CZ said successful the statement.

In effect to harder regulations, the CEO said that Binance would “significantly” summation transparency, impervious of reserves, security funds, and more. 

The connection from CZ came aft Binance announced acquiring FTX, which led to immense speculation that drove BNB prices but aboriginal brought down the full marketplace amid wide bearish sentiments. Earlier, Binance decided to merchantability each its FTT reserves which led to a immense withdrawal of assets from the Bahamas-based cryptocurrency exchange. 

But, the Binance CEO confirmed that the announcement of the acquisition of FTX that followed was not pre-planned and revealed that helium was unaware of the interior authorities of FTX.

“It was little than 24 hrs agone that SBF called me. And earlier that, I had precise small cognition of the interior authorities of things astatine FTX. I could bash immoderate intelligence calculations with our revenues to conjecture theirs, but it would ne'er beryllium precise accurate,” Zhao said.

Meanwhile, the CEO hinted that helium could inactive locomotion distant from the acquisition deal. However, portion the owed diligence connected the woody is inactive ongoing, Zhao revealed that helium had ordered his exchange, Binance, to halt the merchantability of FTT and warned others not to bargain and merchantability FTT tokens.

Earlier, Zhao warned actors against borrowing to tally a crypto business. CEO believes FTX’s troubles connection lessons to different actors successful the industry.

Two large lessons:

1: Never usage a token you created arsenic collateral.

2: Don’t get if you tally a crypto business. Don't usage superior "efficiently". Have a ample reserve.

Binance has ne'er utilized BNB for collateral, and we person ne'er taken connected debt.

Stay #SAFU.

— CZ Binance (@cz_binance) November 8, 2022

Further, successful a abstracted Twitter post, helium called on each crypto exchanges to transportation retired proof-of-reserves to heighten the transparency of idiosyncratic funds. 

The station ‘Do not presumption it arsenic a ‘win’ for us’: Binance CZ says connected FTX acquisition appeared archetypal connected CryptoSlate.