Binance CEO Changpeng Zhao likened the crisis that started with the collapse of FTX to the financial crisis of 2008.
According to the Financial Times report, CZ said that the FTX collapse could gradually affect other projects.
Frightening Prediction from Binance CEO
Speaking at a conference in Indonesia, CZ drew parallels between the current crypto crisis and the financial crisis of 2008.
According to CZ, the crypto industry will have to deal with the repercussions of the FTX collapse. According to him, several crypto projects could find themselves in a serious stalemate.
FTX has filed for Chapter 11 bankruptcy due to the futile search for a bailout package.
FTX’s fate is compared to the collapse of investment bank Lehman Brothers, which has been associated with the 2008 financial crisis. Lehman Brothers went bankrupt due to the subprime mortgage crisis, even though it seemed like a platform that was seemingly too big to fail, just like FTX. The bank’s bankruptcy was one of the most important factors that triggered the 2008 financial crisis.
Arthur Hayes, the former CEO of BitMEX, also said that the entire cryptocurrency market could be affected by this collapse.
The collapse of FTX, the second-largest cryptocurrency exchange after Binance, seems to drive investors away from the crypto market.
While CZ believes that the cryptocurrency industry will eventually recover, he declined to comment on how long it could take.
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