Binance CEO Changpeng “CZ” Zhao in an interview with Bloomberg on Thursday, November 24 answered questions on FTX contagion, Coinbase reserves, industry recovery fund, etc. He believes there will be some contagion for some time as a result of the collapse of the crypto exchange FTX.
Whenever one big player goes down, especially a trading platform, there are many people and institutions with money on the platform. We have seen Genesis halting withdrawals, probably there will be one or two more. However, the cascading effect will become smaller. Overall the industry is fine.
Commenting on deleting a tweet related to Coinbase liquidity issues and Grayscale Bitcoin holdings, Binance CEO clarifies that he was just questioning data on some articles. He doesn’t know whether there are issues with Coinbase or Grayscale.
(By Varinder Singh)