After a letter from Changpeng Zhao to his employees was leaked to the Financial Times, the Binance founder posted it on his social media, reiterating his spirit of transparency.
In the text, Zhao says he was surprised by the call from Sam Bankman-Fried (SBF) this Tuesday (8), initiating Binance’s purchase of FTX.
“I was surprised when he (SBF) wanted to talk. My first reaction was: he wants to trade over-the-counter (OTC)… But here we are.’
That is, even CZ did not believe that FTX could be insolvent, even claiming that it would sell all FTT tokens days before the call to mitigate risk.
Zhao also advises his employees not to sell or buy FTT, as some of them may have inside information about the FTT acquisition. Another point is that not even Binance was able to get rid of its FTT before the sharp drop.
“As soon as I ended the conversation with SBF yesterday, I asked our team that seems to be selling [FTT] as an organization. Yes, we have an amount.”
Changpeng Zhao Is Worried About The Future Of Industry And Binance
At the moment, many people attribute the FTX crash to the founder of Binance. After all, Sam Bankman-Fried allegedly insulted CZ about 10 days ago, claiming that he could not set foot in Washington, DC in the US.
However, CZ noted that the fall of its rival “no win”, On the contrary. In addition to weakening user confidence, regulators are now attacking Binance more than ever.
“Regulators will further investigate the exchanges. Licenses around the world will be more difficult to obtain. People now think we are the biggest [corretora] and they will attack us more.”
Fearing being targeted by regulators, Zhao then points out that Binance’s transparency needs to increase. As an example, he indicates that his brokerage must itself provide proof of reservations.
In other words, investors deserve to know if their money is really in custody with the brokerage firm, that is, if the brokerage firm is not operating with a fractional reserve.
Ignore Prices, CZ Says As Market Melts
Cryptocurrencies have lost BRL 900 billion in market value in the past 24 hours. Bitcoin, which now trades at BRL 17,000, is at its lowest price since 2020, while altcoins are showing double-digit percentage losses.
Regardless, Zhao urges his employees to ignore prices and keep building solutions.
“As I’ve said many times over the years, ignore prizes. Let’s keep our heads down and focus on building products that people will use. This has always worked and today is of course no exception.”ended Changpeng Zhao.
In the spirit of transparency, you might as well share the current note, which was sent to the entire Binance team worldwide a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5
— CZ 🔶 Binance (@cz_binance) Nov 9, 2022
Finally, the fall of FTX could have drastic consequences for the market. After all, as CZ pointed out, regulators will use FTX as an example to regulate exchanges for quite some time to come, just as they continue to use LUNA to talk about stablecoins after so many months.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
