The CEO of the world’s largest crypto exchange platform Binance, Changpeng Zhao, has recently stated that he believes the cryptocurrency market will be able to rebuild itself once the full consequences of FTX’s implosion is felt.
During a conference in Indonesia, Zhao warned that a large number of companies could be affected by the FTX crisis, considering it was the second-largest crypto exchange in the world.
“With FTX going down, we will see cascading effects. Especially for those close to the FTX ecosystem, they will be negatively affected,” he explained, adding that in the end, the “market will heal itself.”
CZ compared the ongoing crypto bear market with the 2008 global market crash, the worst financial catastrophe since the Great Depression.
Full effects of FTX collapse not yet felt: CZ
According to Binance CEO, the recent events are “probably an accurate analogy” to the current economic crisis, and the full effects of FTX collapse have not yet been completely felt. He predicted that the failure would have a domino effect and that in the next few weeks, other companies would go under.
Moreover, as TheCoinRise reported, CZ recently listed some red flags crypto exchange platforms’ users should look out for while their platforms declare proof of assets.
Zhao’s remarks come after the abrupt demise of Sam Bankman-Fried, an ex-billionaire, and his crypto empires FTX.com and Alameda Research. While SBF has resigned as CEO, FTX has already declared bankruptcy along with more than 130 of its affiliates.
Notably, Bankman-Fried, who provided enormous bailouts to struggling crypto companies impacted by the May market crisis, was earlier nicknamed “crypto’s white knight.”
Among the companies he assisted is the cryptocurrency lender BlockFi. In order for the crypto lender to continue processing user withdrawals, the former FTX CEO agreed to a $250 million revolving credit facility. Following the demise of FTX, BlockFi has now stopped withdrawals, as TheCoinRise reported.