Changpeng Zhao (CZ), Binance’s CEO, has called out what he calls “wrong stories.” He has been rebuked by some in the community for depictions of him as the “savior of crypto.”
The collapse of FTX sent a shock wave through the crypto industry. Uncertainties remain about the future of crypto, especially as the victims of the FTX contamination continue to tumble like dominoes.
The turmoil pushed Bitcoin well below the $18,000 price level, raising questions about the viability and solvency of major centralized exchanges like Binance. During this debacle, Binance CEO Changpeng (CZ) Zhao increased his media presence, and some market participants even began to consider him the “savior of crypto.”
But does crypto really need a savior, even in these times of turmoil?
FTX contamination effects
The FTX infestation wreaked havoc on giants like the Digital Currency Group (DCG). DCG-owned Genesis is trying to stave off bankruptcy. At the same time, another exchange, BlockFi, filed for bankruptcy and other exchanges stopped withdrawals.
There have also been layoffs across the industry so companies could survive the bear market.
FTX was an emerging competitor to challenge Binance’s dominance. But with the collapse of FTX, Binance is one of the few major players in the industry.
Binance has a market share of 77% of all centralized exchange volumes (CEX).
Changpeng Zhao, the Savior?
Zhao announced a $1 billion recovery fund to avoid the cascading effects of FTX and help strong projects in liquidity crunch.
While some criticized Changpeng Zhao for being “selfish and monopolizing the market for his own benefit”, others call him a savior.
In a Twitter thread pointing to some “tortious stories,” CZ said crypto doesn’t need to be stored, adding, “that’s the beauty of decentralization.”
However, some community members pointed out that no one considers him a savior, and he is no different than Sam Bankman-Fried. Many say it is hypocritical of Changpeng Zhao, who runs a centralized crypto exchange, to praise decentralization. Others are fine with it and wish the CEO would do the same embrace the role from savior.
Does Crypto Need a Savior?
Since its inception, Bitcoin has endured many trials. Over the years, the price of BTC has corrected by more than 80% in the bear markets of 2013, 2017 and 2020. Mt. Gox, one of the first crypto exchanges, went bankrupt after a hack in 2014 and 650,000 Bitcoin was lost. This resulted in the first major crypto bear market.
In 2017, there were multiple crypto bans from China, crashing the market from $20,000 to $3,000. Similarly, a flash crash occurred due to the COVID-19 pandemic in 2020. Bitcoin has been declared dead almost 500 times due to such market crashes.
The recent 2022 bear market was something else. Multiple over-leveraged stock market collapses and poor global macroeconomic conditions are the main causes this time around. But over the years, crypto has survived and come out of each crypto winter stronger.
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