Changpeng Zhao, also known as CZ, commented on the collapse of FTX at the conference. He played down his role in the events that led to FTX filing for Chapter 11.
I don't think I have a lot of power. The camel's back was broken by the last straw. He said that it was not a strong straw. There are a lot of things built up to it. I might have been the last person to push it.
Over the past few days, he has raised a number of concerns. The implosion of FTX is negative in the short term, but will have a positive effect over time.
Many consumers are hurt financially and have money stuck on FTX. There will be more education to do. We need to make our businesses more transparent. It's probably a good thing.
In many ways, CZ tried to differentiate the two exchanges by design. But what's the difference between the two?
The business is still profitable, according to CZ. I was surprised by the amount of money that datememe lost and the state of things there.
Most of the revenue from that activity is generated by the company. It can change a lot depending on the price of the digital currency.
If the winter lasts longer than expected, the company could start making money from its other products, such as coin market cap and trust wallet.
They made $3 million a month in ad revenue when they were acquired by us. All ads were removed so there was no pop-ups. The experience is a lot cleaner. That can be turned back on. We will get 40 million dollars a year. We don't have to. We give away many products for free to increase the speed of adoption. If we want to make money from those.
The second concern with Binance is that it has its own token. Concerns about the value of FTX's token led to its downfall.
We have proof of reserve and are working with auditors. We would like to be transparent. The situation we're in is different than FTX.
Changpeng Zhao talked about his plans to start an industry recovery fund. The fund is a work in progress, it seems.
It isn't set in stone A lot of numbers have been thrown. He is not sure if the numbers are enough or not.
Almost all projects you hear about in the news, they will have talked to us. Changpeng Zhao
It sounds like a relief effort, but that's not the case. There are different ways to make money. We can get equity or something else. If the open source projects don't have enough funding, there's a chance they'll get help. It would be a traditional grant.
Genesis stopped customer withdrawals for its institutional clients yesterday. They have over two billion in active loans.
Genesis could benefit from some help. I can't say anything about specific deals. We are looking at a lot of projects, so I would assume that there would be NDAs in place. Most of the projects you hear about in the news have spoken to us.
There is a lot of work to be done. There is 100% reserve for user assets. Sam Bankman-Fried, FTX's former CEO, has recently made statements.
Cold wallet addresses are a short-term method of publishing. It doesn't mean you're guaranteed. It increases the amount of questions when things don't add up. What is the security of the wallet infrastructure? How do you use technology for your custody solution? How do you deal with customers? Do you compensate users or not?
He thinks that the exchange is a cutting-edge one. Many of them would like to be made industry standards, like how we manage wallet. We have one of the most secure technologies for wallet management. The biggest wallet in the world is managed by us.
The collapse of FTX is believed to lead to more decentralization. The point of failure was FTX. Users lost money because of that.
CZ doesn't see that as a threat to civilization. He believes that there will always be centralized entities in thecryptocurrencies.
He said that people who don't have the ability to hold their own digital currency are not technically capable of doing that. If we force people to go from banks to Defi, most of them will lose their money because they misplace it, or they don't know how to protect it, etc.
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