Binance CEO Changpeng “CZ” Zhao in a Bloomberg interview responded to FTX contagion on the crypto industry at large. He also spoke on Coinbase reserves and the industry recovery fund.
The fall of FTX will have some spillover effects on the cryptocurrency market, according to the CEO of Binance in an interview with Bloomberg on November 24. However, even if Genesis is unable to obtain $500 million, the sector will ultimately rebound.
“There are many individuals and institutions with money on the platform if one major participant, particularly a trading site, goes down. Genesis withdrawals have been stopped, and there will likely be one or two more. The cascading impact, however, will diminish. The industry is well overall.
In response to a post that was deleted about Coinbase’s liquidity problems and Grayscale’s ownership of bitcoin, the CEO of Binance clarified that he was just challenging part of the information in the tweet. He is unsure whether Grayscale or Coinbase is having problems.
The CEO of Binance claims he doesn’t want to disseminate misinformation. He only seeks to increase the industry’s openness and oversight. He does, however, blame himself for allowing FTX to become too large and for failing to tweet early about selling FTT coins.
Additionally, the form of the crypto industry recovery fund is already being discussed. The fund, which will be accessible through a blockchain crypto address, will receive contributions from various industry participants. And he stated that no one in Abu Dhabi is talking about the industry recovery fund.
CZ disclosed putting aside the first $1 billion to purchase troubled assets. In the next six months, Binance will think about purchasing certain corporate assets. All of the information will be published in a post today.
The Binance team is also involved with the FTX and Genesis problem and may purchase certain assets. However, the current state of knowledge is limited. Additionally, Binance’s US division may put in a bid for Voyager assets.
CZ” remains bullish on the crypto market
The CEO of Binance, “CZ,” is still optimistic about the cryptocurrency market and predicts that it will become stronger and rapidly bounce back. Binance CEO said that a number of crypto influencers think the FTX issue has pushed the industry back a few years.
After U.S. Fed policymakers decided to pause down rate rises, the cryptocurrency market continued to rebound on Wednesday. The price of one bitcoin is now $16,698, up 1% from the previous day. Ethereum, however, rises more than 4% and trades beyond $1,200.