Crypto Crash News Live: Binance CEO CZ said the crypto crash resulted from the FTX acquisition announcement is bad for the crypto ecosystem. In a note shared with Binance employees, CZ said FTX collapse is not good for any stakeholder in the crypto industry. He also said customer confidence on the crypto industry is severely shaken with the FTX scene.
“FTX going down is not good for anyone in the industry. Do not view it as a “win for us”.”
Why FTX Deal Is Bad For Crypto Ecosystem?
The Binance CEO clarified that the whole idea of acquisition was not pre-planned. It was only less than 24 hours ago that I talked to Sam Bankman-Fried, he clarified in the note. He said that the FTX situation will lead to increased regulatory scrutiny on crypto exchanges. Licenses around the globe will be harder to get, he added. CZ also stressed on the need to be open and transparent about company reserves. We must significantly increase our transparency, proof of reserves and insurance funds, he said.
To increase transparency in the industry, the Binance CEO suggested that all exchanges should follow the merkle-tree proof-of-reserves procedure. He said Binance will soon start to do proof-of-reserves soon.
All crypto exchanges should do merkle-tree proof-of-reserves.
Banks run on fractional reserves.
Crypto exchanges should not.@Binance will start to do proof-of-reserves soon. Full transparency.— CZ 🔶 Binance (@cz_binance) November 8, 2022
“Ignore The Prices”
CZ said to his employees it was important to not focus on crypto prices in the current circumstances. “Let’s keep our heads down and focus on building products people use.” Amid concerns about FTX liquidity issues, CZ announced that Binance is intending to fully acquire FTX. He acknowledge that the Sam Bankman-Fried company was going through a significant liquidity crunch and that the acquisition is to help FTX cover the liquidity crunch.
After the announcement from the two founders about the potential acquisition, the crypto market saw a bloodbath of price drops. Over the last one week, the FTX Token (FTT) is down around 83%. As of writing, FTT price stands at $4.42, down by 71.61% in the last 24 hours, according to price tracking platform CoinMarketCap. Also, the crypto crash meant Bitcoin (BTC) dropping by around 10% in the last 24 hours.
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Source: https://coingape.com/breaking-cz-says-crypto-crash-ftx-acquisition-bad-for-binance/