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Saturday, February 4, 2023

Binance CEO Teaches FTX ‘Two Big Lessons’

Binance is the world’s largest cryptocurrency exchange by volume as of July 2022. The CEO of Binance Changpeng Zhao ‘CZ’ has said that cryptocurrency companies should never use their own tokens for payments and secondly, they should never borrow but keep large reserves themselves. He enlightened everyone after the downfall of FTX with these two important points. He also went on to say that Binance has never used BNB for payments and they have never taken any loans from others.

Binance CEO Intends To Acquire FTX To Salvage It

The crypto firm has signed a nonbinding agreement to buy FTX.com a unit of significant rival FTX to help cover a liquidity crunch at the cryptocurrency exchange. Binance CEO Changpeng said on Tuesday.

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Many feel after Changpeng took to social media to declare their decision to liquidate 23 million FTT tokens, this triggered FTX’s liquidity crisis. There was a massive sellout on the exchange.FTT values started falling rapidly. The depreciation was so rapid that within one day more than 75% of the price had dropped. Analytic tools can barely keep up as mass withdrawals imply liquidity is evaporating.

Bitcoin and crypto markets fell heavily on November 8, as contagion from the FTX debacle spilled over.

FTX founder and CEO Sam Bankman-Fried ‘SBF’ on his social handle said that some rivals are claiming that FTX has collapsed but that is not true.’ FTX assets are fine’ he said. He went on to reassure his investors that he had enough funds to cover all client holdings and they do not invest client assets even in treasuries. In the same post, he also said that FTX will be collaborating with their rival exchange Binance soon.

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The crypto firm on the other hand has not disclosed its modus operandi but has promised its customers it will make everything very transparent

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