Binance CEO “CZ” Reveals Plans On FTX, Industry Recovery Fund

Binance CEO Changpeng “CZ” Zhao in an interview with Bloomberg on Thursday answered questions on FTX contagion, Coinbase reserves, industry recovery fund, etc. He believes there will be some contagion for some time as a result of the collapse of the crypto exchange FTX.

Binance CEO Answers FTX Contagion Fears

Binance CEO in an interview with Bloomberg on November 24 said the crypto market will see some contagion effect following the collapse of FTX. However, the industry will eventually recover even if Genesis fails to raise $500 million.

“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.”

Commenting on deleting a tweet related to Coinbase liquidity issues and Grayscale Bitcoin holdings, Binance CEO clarifies that he was just questioning data on some articles. He doesn’t know whether there are issues with Coinbase or Grayscale.

Binance CEO asserts he doesn’t want to spread FUD. He just wants to ensure more transparency and scrutiny in the crypto industry. However, he blames himself for not tweeting about selling FTT tokens earlier and letting FTX gets too big.

Moreover, the crypto industry recovery fund is already under discussion about the structure of the fund. Different industry players will contribute to the fund that will be available on a blockchain crypto address. Moreover, he confirmed that no entity in Abu Dhabi is in discussion regarding the industry recovery fund.

CZ revealed setting aside around $1 billion initially to buy distressed assets. Binance will consider buying some companies’ assets in the next 6 months. A post will be released today with all details.

Furthermore, the Binance team is engaged with FTX and Genesis situation and may buy some assets. However, there is not much information now. Also, Binance’s US arm will consider submitting a bid for Voyager assets.

Changpeng “CZ” Zhao Remains Bullish

Binance CEO “CZ” remains bullish on the crypto market and claims the industry will recover quickly and become stronger. Meanwhile, several crypto influencers believe the FTX crisis sets the industry back a few years, agreed Binance CEO.

The crypto market recovered on Wednesday, with a further push after U.S. Fed officials agrees with slowing down rate hikes. Bitcoin price trades at $16,698, up 1% in the last 24 hours. Whereas, Ethereum jumps over 4% and trades above $1,200.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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