With consumer confidence shaken, CZ believes the event will be a long-term “wake-up call” to learn how to deal with the risks posed to the nascent industry.
FTX lost a number of potential rescuers after shady details of its internal operations continued to emerge. The biggest obstacle was that Binance pulled out of the deal.
But according to the CEO of the crypto giant, the deal with FTX makes no sense.
- While speaking at the Fintech Indonesia Summit, Changpeng “CZ” Zhao weighed in on the takeover that never came to fruition and the reasoning behind it.
- “From a financial perspective, there is a big gap. From new users we have very high duplication. We cover all the areas they cover and they have less users than us. From a technology or product perspective, I think we have a superior product. They don’t have anything that we don’t have. “
- According to CZ, the original purpose was to “protect” users. However, reports of misappropriation of user funds as well as probes from US regulators prompted Binance to halt the takeover.
- The CEO also said that there will be a change in management perspective.
Before that, watchdogs were more concerned with KYC/AML compliance. But as FTX goes down, the focus will be on exchange operations, business models, and proof-of-stake. - Bankman-Fried is said to have approached stablecoin issuer Tether, crypto exchange and Kraken OKX as well as venture capital firm Sequoia Capital for $1 billion or more from each platform.
- Tether CTO Paolo Ardoino confirmed that there are no plans to invest or lend money to FTX or its sister trading company, Alameda, which is at the heart of the debacle.
Read more: Grayscale Bitcoin Trust records a 41% discount amid FTX meltdown
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