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In recent times, the mainstream media has dominated the crypto market with fake news. Changpeng Zhao was in an interview with Bloomberg TV and Radio some time ago and he wanted to clear the air. Additionally, he circled some interesting details regarding the current state of the crypto market.

After his Coinbase note, CZ was dubbed a villain on Twitter for a few days. However, it is evident after today’s interview that Zhao is the boss of the crypto industry. CZ is confident that the crypto industry will thrive and last for decades. He has few regrets, but one thing is certain: he fully understands how the Challenge ecosystem functions.

CZ solves several problems in the crypto market

First, the market was weakened by the contagion caused by the collapse of the FTX. Other dominoes are likely to fall due to liquidity issues, just like Terra. Asked about the next big fish to fall, CZ clarified that the crypto industry will experience further contagion.

I think we will see some contagion. Whenever a big player goes down, especially a crypto trading platform, there are other people and institutions with money on the platform. We’ve seen Genesis stop withdrawals […] I think there will probably be one or two more[…] I don’t know how many.

Changpeng Zhao

According to recent reports, Genesis Global Capital has confirmed that it has recruited investment bank Moelis & Co. to explore ways to strengthen the liquidity of its crypto-lending company. The entity seeks to satisfy customer needs and find a way out of insolvency.

Due to its exposure to former cryptocurrency exchange FTX, Genesis spent most of November scrambling to secure funds or strike a deal with creditors. The company’s institutional lending division was forced to halt takeovers and new lending last week. Additionally, Genesis previously stated that its derivatives division held approximately $175 million in cash locked in its FTX trading account.

The infamous deleted tweet about Coinbase’s BTC holdings: This tweet gave CZ a badass reputation for days. Asked about this, CZ replied as follows:

I don’t think I tweeted about Grayscale nor did I say there were liquidity issues on Coinbase. I was just talking about two articles [the disparity in holdings 650k and 600k BTC holdings] I understand that exchange is separate from custody. So I just posted it as a question […] this caused a lot of misunderstanding in the community so i deleted the tweet.

Changpeng Zhao

Following the outcry on Twitter, Changpeng Zhao was accused of eliminating his rivals and establishing a solo empire. It’s a concern that Bloomberg highlighted, putting Zhao in a sticky spot. He explains that, unlike traditional finance, decentralized finance requires greater transparency of holdings because no one knows anything for sure. Here’s what he had to say about the FTX incident, and he’s filled with regret.

In fact, I’m thinking about the FTX situation and kinda blaming myself for tweeting this too late. I think as an industry we let FTX get too big before asking them about these things. I take the approach where we ask questions earlier.

Changpeng Zhao

Follow Changpeng Zhao

Good news is heading to the crypto industry today. CZ revealed last week that Binance would establish a recovery fund to help projects that are otherwise robust but are experiencing a cash flow problem. According Zhaoa blog post with much more information will be published before the end of the day.

We are going with a loose approach where different industry players will contribute as they wish. We are in the process of restructuring to make it completely public.

Changpeng Zhao

Additionally, Zhao lambasted Bloomberg for publishing a false report about him and his recent business trips to Abu Dhabi. “This Bloomberg article was false and inaccurate.”

CZ announced that the Fund will be created much sooner than expected. “The industry needs to be saved now and not in 2023.” In a few months, he predicts, the industry will have recovered if the damage is repaired more quickly and efficiently.

Its offer for FTX assets emerged as a second key topic. On that note, he indirectly called SBF a fraudster. He believes there are aspects of FTX that can be salvaged. Others not so much. Zhao and Binance left enough room to consider FTX buys when the assets go on sale. He spoke to FTX Books and said:

So we looked at the data room, to be honest, we quickly realized that there was a lot of money missing. [..] to the tune of double-digit billions. Given the amount of client funds they had, they had to move client funds. At this point, we believe there is fraud [..] and when dealing with a scammer, I couldn’t trust any information in the data room […] I don’t believe the information we got is accurate.

Changpeng Zhao

And when asked if the crypto market would survive if Genesis collapsed, he said, “The industry will survive. The industry will have no problem […] that’s the beauty of decentralized finance, when a player steps down a notch to occupy market share.

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