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CZ Unveils Plans For FTX & Industry Recovery Fund

  • CZ discusses FTX contagion, Coinbase reserves, an industry recovery fund, and the Voyager bid in an interview.

  • Binance CEO CZ is highly optimistic about the future of the crypto market.

24 Nov 2022 By : COIN GABBAR
CZ Unveils Plans For

Binance CEO Changpeng "CZ" Zhao answered questions about FTX contagion, Coinbase reserves, an industry recovery fund, and other topics in an interview with Bloomberg on Thursday. 

He believes that the collapse of the crypto exchange FTX will cause some contagion for some time.

Binance CEO Addresses FTX Contagion Concerns

In an interview with Bloomberg on November 24, Binance CEO said that the collapse of FTX will have a ripple effect on the crypto market. Even if Genesis fails to raise $500 million, the industry will eventually recover.

"When one large player, particularly a trading platform, fails, there are many people and institutions with money on the platform. We've seen Genesis halt withdrawals, and there will most likely be one or two more. However, the cascading effect will diminish. Overall, the industry is in good shape."

Binance CEO clarifies that he was simply questioning data on some articles when he deleted a tweet about Coinbase liquidity issues and Grayscale Bitcoin holdings. He is unsure whether the issue is with Coinbase or Grayscale.

CZ claims he does not want to spread misinformation. He simply wishes to increase transparency and scrutiny in the cryptocurrency industry. He does, however, blame himself for not tweeting about selling FTT tokens sooner and allowing FTX to grow too large.

Furthermore, the structure of the crypto industry recovery fund is already being discussed. Various industry participants will contribute to the fund, which will be accessible via a blockchain crypto address. Furthermore, he confirmed that no entity in Abu Dhabi is in talks about the industry recovery fund.

CZ revealed that it will initially set aside around $1 billion to purchase distressed assets. Binance will consider purchasing some company assets over the next six months. 

Moreover, the Binance team is closely monitoring the FTX and Genesis situations and may purchase some assets. However, there isn't much information available right now. Binance's US arm will also consider making a bid for Voyager assets.

CZ is still optimistic

Binance CEO CZ remains optimistic about the crypto market, claiming that it will recover quickly and become stronger. Meanwhile, according to Binance CEO, several crypto influencers believe the FTX crisis will set the industry back a few years.

The cryptocurrency market recovered on Wednesday, with a further push following U.S. Fed officials have agreed to slow rate hikes. 

Read also: Scammer Activities Increased in Crypto Amidst Lasting Crypto Winter