- The terrible decline of FTX has been front-page news everywhere this week.
- As per CZ, the imploding cryptocurrency platform is the first domino.
Binance CEO Changpeng Zhao stated that the devaluation of FTX will have “cascading effects” during a conference in India. The CEO thinks a catastrophe is approaching, and the imploding cryptocurrency platform is the first domino.
The terrible decline of FTX has been front-page news everywhere this week. More recently, it has come to light that the cryptocurrency trading platform has filed for bankruptcy, prompting the departure of CEO Sam Bankman Fried. However, as Changpeng Zhao has foreshadowed, there will be repercussions.
Aftershocks Expected Soon
The Binance founder was quoted as drawing parallels between the present state of the cryptocurrency industry and the financial crisis of 2008. He went on to call it “an accurate analogy” to the events of this week.
With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected,” Zhao warned. CZ has raised a legitimate worry for the business sector for the first time. There will be aftershocks as a result of the near extinction of one of the largest cryptocurrency trading platforms.
Not even Binance’s CEO is confident that what’s happening with FTX right now is an anomaly. Zhao added, “A few other projects are going to be in similar situations. I think it will take a couple of weeks for most of them to come out.”
For the cryptocurrency market, FTX’s decline has been unprecedented. Additionally, the platform’s reputation has been further damaged by allegations of mishandling user funds and Binance’s decision to abandon an acquisition agreement with the now-tainted exchange.
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