February 1, 2023

Binance is at the center of attention in the crypto industry after the collapse of its competitor FTX. The company’s CEO, Changpeng “CZ” Zhao, finally took to Twitter put something right about the events and consequences of its competitor’s demise.

In early November, an article exposed FTX’s balance sheet and showed that it is susceptible to bankruptcy if its own token, FTT, were to crash. A few days later, CZ said that Binance would liquidate its FTT position; the rest is history.

FTX collapsed, the exchange lost billions of dollars in client money and trust in crypto was damaged. In this context, CZ and his company were apparently the only parties to benefit from this.

Binance FTX BNB BNBUSDT
The price of BNB is moving sideways on the daily chart. Source: BNBUSDT Tradingview

Binance rejects the role of “Rescuer”.

In his Twitter thread, CZ attempted to refute the “wrong stories” emerging from recent events. Many of these have been pushed by the mainstream media in favor of former FTX CEO Sam Bankman-Fried (SBF).

Forbes, The New York Times and other prominent publications view the collapse of FTX and SBF’s actions as a “mistake” with no legal ramifications. Many justify these actions based on SBF’s belief of “effective altruism.”

CZ called Bankman-Fried a “liar”, and this action is never done with “good intentions”, Binance’s CEO said. He believes FTX and SBF were responsible for their downfall by “stealing” billions of user funds.

Speaking personally about the two main stories surrounding Binance and CZ, the savior and destroyer of FTX, the executive said:

Crypto does not need to be stored. crypto is fine. It’s the beauty of decentralization. We are just part of it. We want to help other good projects that may be in financial crisis due to recent events. It is in our collective interest.

When did FTX put the last nail in its coffin?

FTX allegedly mismanaged its users’ money since at least 2021 by returning loans to its trading arm, Alameda Research, using the FTT token. Thus, the company would likely fail if the crypto market continued on its downward trajectory.

However, CZ believes the latest attack on its competitor came from Alameda CEO Caroline Ellison. When CZ said Binance would liquidate their FTT, Ellison offered to buy them out for $22. This statement tipped the market about the bottom price of Alameda and FTX.

Later, market participants pushed the price of the token below these levels, triggering the chain of reaction that led to the implosion of FTX. CH added:

SBF continued a story that painted me and other people as the “bad guys”. It was critical to maintain the fantasy that he was a “hero.” SBF is one of the biggest fraudsters in history, he is also a master manipulator when it comes to media and key opinion leaders.

Leave a Reply

Your email address will not be published. Required fields are marked *