{"id":273955,"date":"2022-11-09T20:21:04","date_gmt":"2022-11-09T20:21:04","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=273955"},"modified":"2023-10-10T10:06:53","modified_gmt":"2023-10-10T09:06:53","slug":"do-not-view-it-as-a-win-for-us-binance-cz-says-on-ftx-acquisition","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/do-not-view-it-as-a-win-for-us-binance-cz-says-on-ftx-acquisition\/","title":{"rendered":"‘Do not view it as a \u2018win\u2019 for us’: Binance’s CZ says on FTX acquisition"},"content":{"rendered":"

Binance CEO Changpeng Zhao(CZ) <\/span>shared<\/span><\/a> his views regarding the recent FTX\u00a0 debacle with the Binance community, stating FTX going down is not good for the industry as it will welcome tougher regulations around the globe.\u00a0<\/span><\/p>\n

\u201cDo not view it as a \u201cwin for us. User confidence is severely shaken. Regulators will scrutinize exchanges even more. Licenses around the globe will be harder to get,\u201d CZ said in the statement.<\/p><\/blockquote>\n

In response to harder regulations, the CEO said that Binance would \u201csignificantly\u201d increase transparency, proof of reserves, insurance funds, and more.\u00a0<\/span><\/p>\n

The statement from CZ came after Binance <\/span>announced<\/span><\/a> acquiring FTX, which led to huge speculation that drove BNB prices but later brought down the whole market amid overall bearish sentiments. Earlier, Binance <\/span>decided<\/span><\/a> to sell all its FTT reserves which led to a huge <\/span>withdrawal of assets<\/span><\/a> from the Bahamas-based cryptocurrency exchange.\u00a0<\/span><\/p>\n

But, the Binance CEO confirmed that the announcement of the acquisition of FTX that followed was not pre-planned and revealed that he was unaware of the internal state of FTX.<\/span><\/p>\n

\u201cIt was less than 24 hrs ago that SBF called me. And before that, I had very little knowledge of the internal state of things at FTX. I could do some mental calculations with our revenues to guess theirs, but it would never be very accurate,\u201d Zhao said.<\/p><\/blockquote>\n

Meanwhile, the CEO hinted that he could still walk away from the acquisition deal. However, while the due diligence on the deal is still ongoing, Zhao revealed that he had ordered his exchange, Binance, to stop the sale of FTT and warned others not to buy and sell FTT tokens.<\/span><\/p>\n

Earlier, Zhao warned actors against borrowing to run a crypto business. CEO believes FTX's troubles offer lessons to other actors in the industry.<\/span><\/p>\n

\n

Two big lessons: <\/p>\n

1: Never use a token you created as collateral. <\/p>\n

2: Don\u2019t borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve.<\/p>\n

Binance has never used BNB for collateral, and we have never taken on debt.<\/p>\n

Stay #SAFU<\/a>.\ud83d\ude4f<\/p>\n

— CZ \ud83d\udd36 Binance (@cz_binance) November 8, 2022<\/a><\/p><\/blockquote>\n