To allay investor concerns caused by the FTX crash, all central exchanges released their proof of reserve throughout the week. Announcing $70 billion in reserves, Binance CEO CZ is now announcing that they will be collaborating with Ethereum founder Vitalik Buterin to “create a more reliable system.”
Binance CEO says Vitalik Buterin will help the stock market
CZ has confirmed that Ethereum founder Vitalik Buterin will create a “proof of reserve” protocol and use Binance as a “guinea pig.” Speaking at the Twitter meeting that began in the past hours, the CEO referred to some of the questionable practices of FTX and Alameda prior to last week’s crash. He reassured listeners that Binance is taking a more conservative approach to its operations. He stated that they did not make the simple mistakes that other exchanges made:
We do not take loans from others, we do not take VC investments. Specifically, we do not take VC investments and then give them back to VCs.
https://twitter.com/binance/status/1592147495953780738
CZ also warns against other possible domino effects:
If a company’s] funds don’t largely contain stablecoins, that’s a risky sign.
Zhao’s warning came amid concerns that Crypto.com could face bankruptcy. In recent days, the stock market’s lack of stablecoin reserves has been on the agenda. The company’s CEO, Kris Marszalek, denied the rumors during an “ask me anything” discussion on Monday.
CZ says Sam Bankman-Fried cheated the community
Binance CEO also made statements about Sam Bankman-Fried, the founder of FTX, which went bankrupt. He noted that the SBF lied to its stakeholders and regulators. He added that they have no problems with the growth of rival exchanges:
It is not right to blame Binance in this process… SBF lied to the users of its own exchange, its shareholders, its regulators. We are not responsible. We can’t have a problem with the growth of other exchanges. The growth of the ecosystem will also be positive for us.
The cryptocurrency market tumbled after CZ announced that it would sell the FTT tokens held by Binance. Recent developments include the hack where over $400 million in cryptocurrencies were moved to external wallets over the weekend. “I couldn’t even imagine if I was writing a novel,” says CZ.
The price of Bitcoin was on the rise during the Twitter meeting attended by about 192,000 people. It recorded an intraday high of $17,200. The short-term momentum continued at the same rate downwards. Bitcoin later dropped to $16,400. Meanwhile, most altcoins, including Ethereum, Cardano, and MATIC, had the opportunity to recover around 5%. As you follow on Kriptokoin.com, Trust Wallet has reached a new high today after CZ’s tweets dated November 13.
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