Binance CEO Changpeng Zhao was quoted by the Financial Times as saying at a conference in India that FTX fall will have “cascading effects,” implying that a crisis could be on the horizon.
The tragic decline of FTX has been front-page news everywhere this week. Add to that the news today that the cryptocurrency trading platform has declared bankruptcy and lost its CEO, Sam Bankman Fried. Changpeng Zhao has warned that there will be consequences.
#Binance CEO warns more companies could fail in the coming weeks following the FTX troubles.
— Crypted Crypto (@crypted_crypto) November 11, 2022
Crypto Market Entering Crisis?
According to the Financial Times, a top executive at cryptocurrency exchange Binance has compared the current market situation to the financial crisis of 2008. The statement that it was “an accurate analogy” to events this week was also included.
As Zhao elaborated, “With FTX going down, we will see cascading effects. Most noticeably, those involved in the FTX ecosystem will suffer. Zhao has raised a legitimate concern for the market, which has not been addressed before. When one of the largest cryptocurrency exchange platforms collapses to the point of near oblivion, there are bound to be repercussions.
As for whether or not the current FTX situation is an anomaly, Binance’s CEO is similarly unconvinced. Some other projects are going to be in the same boat,” Zhao continued. Most of them probably won’t be out for another couple of weeks.
What has happened to FTX in the cryptocurrency market is unprecedented. Binance’s decision to back out of a deal to acquire the now-tainted platform only adds fuel to the fire of reports of customer assets being misused.
Even though he painted a bleak picture, Zhao reassured his audience that this would not determine the future of cryptocurrency. Rather, “the market will heal itself,” as Zhao put it.
Source: Watcher
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
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