Updates on what this means for the crypto industry

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The following is an ongoing compilation of opinions and commentary on the takeover of the FTX exchange by Binance Global Inc. amid speculation about solvency issues at FTX – one of the most popular cryptocurrency companies. important in the world.

Fast facts

  • Gracy Chen, CEO of Bitget, warns that Binance could “damage the long-term interests of the industry”: “It is highly unlikely that Binance will ultimately succeed in acquiring FTX. It looks like CZ has taken a complete victory, but [Binance] will eventually pay the price for harming the long-term interests of the industry… The acquisition of FTX is not a valuable exchange, and CZ’s goal has already been achieved. Even if BN buys FTX, it’s [harmful] to industry and a humiliation to decentralization. For [Binance]it might be a short-term win listed in a case study, but it will backfire on you [Binance] long-term.”

  • Coinbase CEO Brian Armstrong said on Twitter that “heavier regulation” could result: “Part of the problem here is that regulators have focused on each of their respective markets, while customers have moved to companies with more opaque and risky business practices…The temptation of events like these is to call for tougher regulation. . This would only compound the problem for crypto businesses and crypto users overseas.

  • Jeremy Allaire, Chief Executive Officer (CEO) of Circle, said on Twitter that he is disappointed to see a “Lehman Bros moment” in crypto“This whole market cycle (down) has given us plenty of opportunities to reflect on the deeper issues in the market. Lack of transparency, lack of counterparty visibility and project treasuries and balance sheets anchored in speculative tokens are the root causes… As someone who has been involved in this industry for 10 years, it is disappointing that a technology born in reaction to Lehman Bros. moment of 2008 resulted in its own version of the same. We can do better. »

  • Crypto.com CEO Kris Marszalek says on Twitter that this again draws attention to the importance of transparency: “A sad day for the industry. This confirms once again that building with compliance and safety as our fundamental pillars is the right long-term call… We recognize the importance of transparency and will continue to engage regulators to strengthen and protect our industry so that what happened today does not repeat itself.

  • Fabian Astic, MD & Head of DeFi & Digital Assets, Moody’s Investors Service, says in a statement that in crypto, a liquidity crisis builds up much faster than in TradFi“Limited transparency and uneven regulation in cryptofinance make it harder for market participants to make decisions based on a standardized framework. As evidenced by the events unfolding in FTX, crypto participants react faster to news and rumors, which in turn creates a liquidity crisis much faster than what would have been seen in traditional finance.

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