According to Binance CEO Changpeng Zhao, the $1 trillion digital asset market is facing a crisis similar to the financial crash in 2008, and Zhao will be out in the coming weeks after the problems with FTX. more companies could go bankrupt warned.
Zhao, founder of the world’s largest digital asset exchange, rival crypto exchange The full impact of the collapse in FTX has yet to be felt. told.
Speaking at a conference in Indonesia, Zhao said the global financial crisis is “probably the right analogy” for this week’s events.
“We Will See Chain Effects in Companies Close to FTX in the Cryptocurrency Market”
“With the collapse of FTX, we will see knock-on effects,” Zhao said, adding: “Especially those close to the FTX ecosystem will be adversely affected.”
These comments came as crypto investors feared more waves of collapse after an offer made by Zhao to buy FTX earlier this week fell through.
The largest cryptocurrency bitcoin, It has slid 17% in the past five days to its lowest level in two years, amid turbulent talks between Binance and FTX CEO Sam Bankman-Fried.
Bankman-Fried apologized for the liquidity crisis at FTX, but did not elaborate on what caused it.
“This lack of transparency is something every trader and investor will be very careful about going forward,” said Anatoly Crachilov, CEO of Nickel Digital Asset Management.
On the other hand, CZ tweeted about the subject and made the following statements:
Avoid these types of businesses/exchanges/projects:
- Surviving by selling their own tokens
- Giving high incentives to sell their tokens
- Large in aggregate supply but small in circulating supply
- containing credit
“They Won’t Have The Money For The Voyager Agreement To Fulfill”
Zhao was also skeptical of FTX’s deal to buy the assets of another crypto lender, Voyager, from bankruptcy, saying that FTX “obviously won’t have the money” for the $1.4 billion transaction.
Zhao also said, “A few other projects will be in a similar situation. “I think it will take a few weeks for most of them to show up,” he said.
But the Binance CEO is confident that the crypto industry will eventually recover. “The market will heal itself,” Zhao said. said.
*Not investment advice.
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