Crypto overall is fine despite FTX’s insolvency, says Changpeng Zhao

Binance CEO said more companies would be affected by the collapse of the FTX crypto exchange.
He pointed out that the overall crypto market is fine despite FTX’s insolvency.
CZ’s tweet on Coinbase caused a lot of misunderstanding in the crypto community.

The crypto industry is fine despite recent events

Changpeng Zhao, the CEO of Binance crypto exchange, believes that the crypto market overall is fine despite FTX’s bankruptcy. When asked about the effects of the FTX collapse, CZ told Bloomberg that;

“I think we will see a little bit of contagion. Whenever a trading platform collapses, there are many other people or institutions with money on the platform. I think we saw Genesis halting withdrawals. I think there would be one, two, or a couple of others that would be affected. Every time a platform fails, there are cascading effects. But overall, the industry is fine.”

This latest cryptocurrency news comes a few days after CZ tweeted about Coinbase. Bloomberg hosts said his tweets suggested that there might be liquidity issues with some crypto firms like Coinbase and Grayscale. However, CZ deleted the tweet a few hours later. When asked if investors should be worried, he clarified that;

“I didn’t tweet about Grayscale, and I didn’t say there were liquidity issues at Coinbase. I was just referring to two articles. One article revealed that Coinbase said Grayscale has 635k bitcoins with them. The other article said Coinbase revealed a few months ago that Grayscale only had 600k bitcoins on the exchange. I just posted to confirm if the two numbers were correct. That caused a lot of misunderstanding within the community, and I deleted the tweet.”

CZ’s tweet is not to spread rumour

The Bloomberg host also asked CZ if the tweet was meant to spread rumours to create doubt about the credibility of those companies so he could build his own empire. CZ replied that;

“I don’t know if there are insolvency issues with those other businesses. The thing is, unless we get accurate financial statements, we don’t know for sure. But I am not doing that because we want to build an empire.”

He added that he blamed himself for not tweeting about FTX on time. He added that;

“As an industry, we let FTX get too big before we start questioning the company’s financial statement.”

Binance is currently the world’s leading crypto exchange and processes around $10 billion in daily trading volume.