Partnered With:

CZ to staff on day two of trading: It's not a win

Read this article in 5 Minutes

The CEO admitted that the acquisition of FTX, creating by far the largest cryptocurrency exchange in the world, would make Binance a target.

Original title: "Binance chief says near collapse of FTX 'severely' eroded confidence in crypto industry"

Original author: Joshua Oliver, FT

Original compilation: 0x9F, BlockBeats

Binance CEO CZ said on the second day of planning to rescue competitors, FTX’s few The recent collapse has "severely shaken" confidence in the crypto industry and will trigger greater scrutiny from regulators.

In a memo to employees, CZ said the bailout strengthens Binance as a global The status of the largest cryptocurrency trading platform, but not "a victory".

CZ wrote to employees earlier Wednesday that: "Regulators will conduct Stricter scrutiny. Licenses will be harder to obtain worldwide."

The memo Also showcased the speed at which he struck a deal with rival SBF to prevent a total collapse of FTX. Earlier this year, FTX was valued at as much as $32 billion. Binance declined to comment on the internal memo.

CZ and SBF announced on Tuesday after a surge in customer withdrawals sparked a liquidity crisis Binance has shocked the cryptocurrency industry by agreeing to bail out FTX.

FTX's troubles began last weekend when CZ said his firm planned to sell over $500 million worth of holdings FTX's own digital Token began to accelerate, and this amount far exceeded the total daily transaction volume of the Token.

CZ said: "We do not have a master plan for this or anything related."

“SBF called me less than 24 hours ago. Little is known about the internals of FTX. I can guess their income by doing some mental math with our income, but it will never be very accurate. I was surprised when he tried to speak. My first reaction was, he wanted Off-exchange trades...and that's how it turned out."

Tuesday with SBF After the call, CZ ordered Binance to stop selling FTT.

Currently traded with FTX Due diligence is still ongoing, and CZ has publicly stated that he may still walk away from the deal. Earlier Wednesday, he hinted at his thoughts on what went wrong with FTX on Twitter: "Never use tokens you create as collateral...if you run a crypto business, don't borrow money. Don't be 'efficient' To use capital efficiently, we must have a large amount of reserves.”

After FTX nearly went bankrupt, Binance and other larger trading platforms have pledged to publish more evidence of keeping customers' funds in safe reserves that can be withdrawn at any time.

“We must dramatically increase transparency, proof of reserves, insurance funding, etc. This area will also More results. We have a lot of hard work to do. Not to mention wild price swings," he wrote in a letter to employees.

The CEO also admitted that the acquisition of FTX, creating by far the world's largest crypto A currency trading platform that would make Binance a target.

< p>

"People now think we are the biggest and will attack us more," he said.