Changpeng Zhao compared the situation on the crypto market to the 2008 crisis

Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao, CEO of Binance, shared his thoughts on the bankruptcy of FTX and the future of the cryptocurrency sector. According to Zhao, the current market situation is reminiscent of the beginning of the financial crisis in 2008, when one of the largest US banks, Lehman Brothers, collapsed.

«With the fall of the FTX, we will see cascading effects,» Changpeng Zhao emphasized during his speech at a conference in Indonesia. The Binance CEO is virtually certain that the situation will worsen, and FTX will not be the last platform to go bankrupt.

As FUD (fear, uncertainty, and doubt) is spreading through the crypto community due to the FTX bankruptcy, Binance has disclosed details about its reserves. As of November 10, the market value of all digital assets held by Binance is about $ 71 billion. Binance representatives also announced the replenishment of its SAFU insurance fund, created in 2018 to protect Binance users in extreme situations. «The insurance fund is $ 1 billion and is just part of our commitment to users to build the safest and fairest blockchain ecosystem in the world,» Binance emphasized.

Just a day after the announcement of the acquisition, Binance refused to acquire FTX. The company stated that it was unable to solve the problems on the platform. «Initially, we hoped to be able to support FTX users and provide the necessary liquidity. However, the exchange’s problems are beyond our control and we are unable to help,» the crypto exchange said in an official statement. Currently, FTX has declared bankruptcy, and its CEO and founder Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697″ data-wpel-link="internal">Sam Bankman-Fried has resigned.