On Thursday, Changpeng Zhao, the founder of crypto exchange Binance, was a guest on Bloomberg Crypto. He answered several questions regarding the FTX collapse, the health of the market, and the future outlook for the industry. Among other things, CZ returned to the rumors according to which the company he runs is of Chinese origin. Decryption of his interview.
After FTX there will be contagion, but everything will be fine for cryptos
In his interview with Bloomberg Crypto, CZ returned to the responsibility of the leaders of FTX in the current crisis. This, noting that they have for the last few years projected the image of a solid, ethical and regulatory-conscious company. CZ says he regrets not having taken a critical approach to his competitor earlier. For him, a critical approach is now necessary in the industry to avoid similar situations.
“We let FTX get too big before we started to question ourselves (…) This does not mean that we are launching attacks against our industry peers. We just want to build more transparency and trust in the sector”he said.
He explained that when buying FTX, Binance discovered some things that prevented him from doing so. “There were potential investigations going on, so we decided not to touch it”he explained.
On the question of the state of the market, he painted a picture of major difficulties, in the short term. A difficult period that will be succeeded by a new chapter of growth in the history of cryptos.
“I expect there to be contagion. Whenever a big player goes down, especially a trading platform, there are many other people or institutions that have money on the platform (…) But whenever there is a domino effect, the effects become less and less important. So overall I think the industry will be better. But there will be other collapses”
CZ also talked about his plan to revive the crypto industry, with a budget of 1 billion dollars. He said the fund will be transparent and launched as soon as possible. It will be used to reach out to companies in difficulty, to limit the contagion effect.
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