Tech

Binance CEO Not Worried About FTX Explosion

The crypto market is trying to pick up the pieces after it fell into massive turmoil last week when the previous third-largest crypto exchange, FTX, crashed and filed for bankruptcy.

“It is clear that people are worried, concerned and a little worried about what is happening in the industry,” Changpeng ‘CZ’ Zhao, CEO of the largest cryptocurrency exchange Binance, said in a statement. a Twitter Space on Monday. “I’d say it’s painful in the short term. But, I think this is good for the industry in the long run.”

Zhao admitted that a lot of people have lost money recently and many are still stuck with FTX, so “there will be pain.” But he hinted that market conditions will improve in the future.

“The industry is not going away and the other strong players in the industry are now even stronger,” he said.

Last week, several crypto exchanges, including Binance, Crypto.com, KuCoin, and OKX said they would start publishing proof of reserve in an effort to reassure customers and investors that their funds are safe after the FTX crash. Last week, Zhao stressed the importance of transparency, tweets“All crypto exchanges should implement proof of reserve of merkle trees.”

Reserve evidence (PoR) is an independent audit by third parties that aims to provide transparency and evidence that custodians hold assets they claim to own on behalf of their clients.

These exchanges join other crypto businesses like Gemini, BitGo, and Paxos, to name a few, which have been using PoR for years to prove their worth of billions of dollars, said Sergey Nazarov, co-founder. founded Chainlink, told TechCrunch on Friday.

“Now we are increasing transparency in the industry, we are increasing security in the industry, and we are increasing our communication with regulators around the world,” Zhao said today. “I think five years from now, when we look back at this, the industry is going to be stronger.”




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