Binance CEO claimed the youngster crypto industry “Everything will be fine” despite recent market turmoil caused by the collapse of rival exchange FTX.
Changpeng Zhao also claimed to be working on establishing a recovery fund for people in the market. The news comes after Binance backed out of a deal to rescue FTX, before the the company declared bankruptcy Friday.
“We want the strong industry players today to protect the good industry players who might be hurt in the short term,” Binance CEO said. CNBC.
Zhao noted, however, that he didn’t say “we can save everyone.”
“If a project is mismanaged on multiple fronts, we won’t be able to help them anyway,” he said.
Zhao has not yet specified how much money will be invested in the recovery fund.
According CNBC, Zhao suggested he didn’t expect the industry’s recent slump to cause long-term damage and said the cryptocurrency had “shown extreme resilience.”
Bitcoin is in a tough spot right now
The news comes as cold winds from the cryptocurrency winter continues to blow on the market.
Bitcoin is in a very difficult situation right now. Bitcoin price recently fell below $17,000 for the first time since 2020.
There are fears that the fall of crypto and platforms like FTX will lead to the collapse of other major industry platforms like Crypto.com.
Kris Maeszalek, CEO of Crypto.com, took to social media to allay fears of clients claiming their deposits were safe with the company.
Zhao claimed Binance’s “slight increase in withdrawals” last week was right in line with other market declines.
“Every time the prices go down, we see an increase in withdrawals,” Zhao said. CNBC.
“This is perfectly normal.”
Binance’s CEO said he wanted to create an organization to “establish best practices” across crypto, which is currently extremely unregulated.
Zhao said, “Regulations should be tailored to this industry.
“Regulation will not fix all of this, it will reduce it. It’s important, but we have to have the right expectations.
At the same time, capital raises in the blockchain industry fell in 2022, compared to the previous year, according to data from research firm GlobalData.
In 2021, the global industry raised over $26.6 billion in new funding. However, that figure has fallen to $18.2 billion so far this year.
There are, however, two things to note about these stats: first, there is always a lag on these stats with new rounds being announced all the time, and, second, these numbers are still higher than the record year numbers. previous year of 2019. That year, the sector raised just over $5.9 billion.
GlobalData is the parent company of Verdict and its sister publications.