FTX continues to fall, the market crisis is developing


The story of the popular FTX cryptocurrency exchange and its native FTT token is developing in an increasingly frightening scenario. The largest cryptocurrency exchange Binance, which seemed to be planning a merger, decided to slow down a bit, and Changpeng Zhao urged employees not to trade FTT. And while Zhao is backing down, bitcoin is pouring and FTX is sinking, the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) have joined the investigation of the events of recent days.

Changpeng Zhao on guard of the cryptocurrency industry

Zhao published a letter to Binance employees. He commented on the FTX crisis and said that he does not perceive the possible collapse of a competitor as a victory.

In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours  — CZ (@cz_binance) November 9, 2022

According to Zhao, he had no information about the state of affairs in FTX until yesterday the head of the competitive exchange Sam Bankman-Fried himself called. The head of Binance also refused to comment on the FTX deal and asked employees to refrain from trading FTT.

Zhao also does not advise to rejoice violently — the collapse of FTX will affect all participants in the cryptocurrency industry.

The fall of the FTX is hurting every industry participant. The trust of users is seriously undermined. Don't treat it ’as a victory'. Regulators will monitor the exchanges even more strictly. It will be more difficult to obtain licenses all over the world.

In general, Zhao had a busy day today — in addition to writing to employees, he also called on participants in the cryptocurrency industry to confirm their reserves and promised to set a good example: "Exchanges should confirm their reserves. And Binance itself will be open in this matter. We will provide information soon. Full transparency." In addition, he reported that the Binance insurance fund (SAFU), which had decreased as a result of the fall of the crypto market, was again brought to $1 billion.

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