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Binance's CZ Unveils 5 Points about FTX Situation, Here's What He Said

Wed, 11/09/2022 - 16:15
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Gamza Khanzadaev
Binance CEO reveals intriguing details of FTX deal in letter to employees
Binance's CZ Unveils 5 Points about FTX Situation, Here's What He Said
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The head of Binance, Changpeng Zhao, has published an open letter to his staff, revealing details of a possible FTX purchase, as well as clarifying in five points the overall situation.

As CZ states, the situation around FTX was not a master plan to eliminate a major competitor when Binance announced the sale of nearly $600 million worth of FTT tokens. The head of the leading crypto exchange goes on to say that he was surprised when Sam Bankman-Fried called. Thinking that the FTX CEO wanted to buy Binance's reserves in FTT over the counter, CZ did not expect it to lead to the possibility of buying the entire exchange.

Concluding this point, Zhao also advises against buying or selling FTT and stated that even Binance has stopped all operations with it and is just holding its bag. He also advises everyone to refrain from commenting on the deal, which is currently being evaluated.

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Main point(s)

Perhaps the main point of CZ's address is where he states that the collapse of FTX is not good for the crypto market. Regulators will scrutinize exchanges even more, and licenses will become more difficult to obtain, and transparency will have to be raised significantly, says the Binance CEO. "Do not view it as a win for us," he concludes.

Finally, the fifth point is to ignore prices and concentrate on building what people need, says Changpeng Zhao.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.