Binance’s CEO is not worried about the FTX implosion

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The crypto market is trying to pick up the pieces after being thrown into massive disarray last week when the formerly third-largest crypto exchange, FTX, imploded and filed for bankruptcy.

“Obviously people are nervous, interested and somewhat nervous about what is happening in the industry,” Changpeng “CZ” Zhao, CEO of the largest crypto exchange Binance, said during a Twitter Space Monday. “I want to say, in the short term it is painful. But I think this is good for the industry in the long run.”

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Zhao acknowledged that many people have lost money recently, and many still have money tied to FTX, so “there will be pain.” But he hinted that market conditions should improve over time.

“The industry is not going away and the other strong players in the industry are even stronger now,” he said.

Last week, a number of crypto exchanges, including Binance, Crypto.com, KuCoin, and OKX, said they would begin publishing proof-of-reserves in an effort to reassure customers and investors that their funds are safe in the aftermath. of the FTX debacle. Last week, Zhao stressed the importance of transparency, tweet“All crypto exchanges should do Merkle-tree proof-of-reserves.”

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Proof-of-reserves (PoR) are independent third-party audits that aim to provide transparency and evidence that a custodian is holding the assets it claims to own on behalf of its clients.

These exchanges join other crypto companies such as Gemini, BitGo and Paxos, to name a few, that have been using PoR for many years to prove billions of dollars in value, Chainlink co-founder Sergey Nazarov told Friday. TBEN.

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“Now we are increasing transparency in the industry, increasing security in the industry and improving communication with regulators around the world,” Zhao said today. “I think when we look back on this five years later, the industry will be stronger.”