Cryptocurrency

CZ says industry is in pain but it’s business as usual at Binance

Binance CEO Changpeng Zhao said the company has not experienced any serious side effects from FTX’s fallout.

During an AMA on Twitter Spaces, CZ answered some very tough questions from users and community leaders, pointing out that the exchange is doing business as usual.

When asked about the content of the proposal recovery fund Aiming to mitigate the impact of FTX’s loss, CZ said four or five funds have contacted Binance. The CEO said the fund was still being worked out, but did not provide any new information.

However, CZ reiterated that while the company will do everything in its power to help the industry recover, it will not try to be the savior at the expense of its own users.

鈥淏inance does not have to pay for everything that is happening in the industry.

The ongoing market crisis has not affected any company in Binance’s portfolio. CZ specifically mentioned Trust Wallet, a self-managed cryptocurrency wallet acquired by Binance, as an example of how the acquired company is separate from Binance’s core business. .

Regarding Binance’s core business, CZ has not reported any adverse effects.

The exchange saw a slight increase in withdrawals over the past week, but CZ noted that it’s normal for cryptocurrencies to fall in price. Binance will not be adversely affected even if withdrawals increase significantly.

If users start withdrawing funds in large numbers, Binance will experience a reduction in reserves, but business will not be threatened.

Binance is committed to transparency and will continue to disclose its reserves to the public. CZ is ready to make Binance a guinea pig for the Proof-of-Reserve protocol proposed by Ethereum founder Vitalik Buterin and ready to provide live insight into the exchange’s reserves He said that

Other Binance-branded exchanges, including Binance Turkey, also plan to start disclosing their reserves in the near future, CZ said.

He ended the AMA session by saying that the ongoing market crisis caused by FTX is beneficial to the industry. Improved education will make the industry better and more resilient in the long run.

To further strengthen the industry, Binance is working to establish a global trade association of the largest players in the cryptocurrency industry. The association will focus on creating and promoting best practices in the industry and will serve as a single point of communication for regulators.

CZ said that Binance will not be directly involved in running the association and that role will fall to another company that has run similar associations for other industries. Such an organization has reportedly been proposed and requested by “several regulators,” he said.

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